Underground tells the epic, surreal story of two friends, Marko and Blacky, spanning from World War II to the Yugoslav Wars of the 1990s. During the Nazi occupation of Belgrade, Marko hides Blacky and a group of partisans in his grandfather's large cellar to protect them. While they manufacture weapons for the resistance, Marko becomes a high-ranking Communist official in Tito's regime.
The twist lies in Marko's grand deception: for twenty years, he keeps the cellar inhabitants convinced that World War II is still raging above, manipulating time and feeding them fake news broadcasts. He exploits their labor to manufacture arms for his own profit while seducing Natalija, the woman they both love.
When the truth finally breaks and the inhabitants emerge decades later, they find themselves in the middle of a new conflict—the Yugoslav Wars. The film blurs the lines between the staged reality of the cellar, the filming of a propaganda movie about their lives, and the grim reality of the 1990s civil war, culminating in a surreal, dreamlike reunion.
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