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Dan Gallagher is a successful, happily married New York attorney living in Manhattan when he meets Alex Forrest, an editor from a publishing company, through business. While his wife and his daughter are out of town for the weekend, Dan has a brief affair with Alex. What Dan thought would be a simple fling turns into a dangerous sequence of events when Alex begins to cling to him obsessively.

Alex Forrest's mental instability initially surfaces when she attempts suicide after Dan explains to her that he must go home and get on with his life. Dan thinks the affair is forgotten, but Alex begins to show up at various places to see him. She is waiting for him at his office one day to apologize and invite him to the opera Madame Butterfly with her, but he turns her down. She then begins to call Dan's office until he tells his secretary he will no longer take her calls. Alex then starts calling Dan's home at all hours and then informs Dan that she is pregnant and planning to keep the baby. Although Dan wants nothing to do with her, she argues that he must take responsibility. Alex then shows up at Dan's apartment (which is for sale) and meets his wife, Beth, feigning interest as a buyer. Later that night, he goes to her apartment to confront her about her actions. In response, she replies, "Well, what am I supposed to do? You won't answer my calls, you change your number, I'm not going to be ignored, Dan!"

Dan moves his family to the New York village of Bedford (which was actually filmed in Mount Kisco). However, this doesn't deter Alex, who continues to fervently stalk him. She has a voice recording delivered to Dan and follows him home one night to spy on him, his wife Beth, and their daughter Ellen from the bushes in his yard; the sight of their family life literally makes her sick to her stomach. Alex's obsession, which grows stronger as time goes on, eventually turns into madness. Dan approaches the local police to apply for a restraining order against Alex (lying that it is "for a client"), to which a police lieutenant claims that he cannot violate Alex's rights without cause and that the adulterer has to own up to his free love attitude (arguably one of the few men to confront Dan about "what goes around comes around"). At one point, while the Gallaghers are away from home, Alex kills Ellen's pet rabbit, and puts it on their stove to boil.

Dan tells Beth of the affair and Alex's pregnancy; Beth becomes angry with Dan and asks him to leave. Before he goes, however, Dan calls Alex to tell her that Beth knows all about the affair. Beth then gets on the phone and warns Alex over the phone that if she persists, Beth will kill her. Alex kidnaps Ellen from school, though she brings Ellen home unharmed (after taking her to an amusement park--Rye Playland--and buying her ice cream). Meanwhile, Beth is injured in a car accident while searching in a panic for her child. Dan once again approaches the police about having Alex arrested. The police still say they lack cause to take action against her, although they can drive by his residence to watch for any intruders. Beth is briefly hospitalized and soon released. By this time, Beth has forgiven Dan and he returns home.

Finally, Alex becomes determined to eliminate what she sees as her main obstacle: Beth. While Beth is in the bathroom, Alex suddenly appears behind her. As she attacks Beth with a butcher knife, Dan hears the screaming and runs in, wrestling Alex into the bathtub and drowns her. She suddenly emerges from the water, swinging her knife. Beth, who had gone in search of Dan's recently-purchased gun, appears in the doorway and shoots her in the chest, killing her.

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