The film that Woody Allen has said is his favorite of all that he's made, THE PURPLE ROSE OF CAIRO unites the competing tendencies in his work towards realism (be it comic, as in ANNIE HALL, or dramatic, as in INTERIORS) and comedic fantasy (such as SLEEPER or BANANAS). Cecilia (Mia Farrow) lives in New Jersey during the Great Depression, which appropriately describes her mood: she works a dead-end job as a waitress that supports her and her abusive, deadbeat husband Monk (Danny Aiello). Her only release is at the cinema, where she repeatedly goes to see a trite romantic adventure called "The Purple Rose of Cairo." But when Tom Baxter (Jeff Daniels), the lead character of the film, steps off the screen and falls in love with her, Cecilia has to deal with the disjoint between her own life and the glamorous world on the screen.

Although the film begins realistically--there is close attention paid to period setting and costuming--the conceit of a film character emerging from the screen is one Allen would rarely use except in his outright comedies. However, THE PURPLE ROSE OF CAIRO blends dramatic and fish-out-of-water comedic situations to explore the disparity between the real world and fantasy. What is really at issue in the film is the positive psychological effects of the fantasies of the traditional film world. The film is the product of a true film lover, and stands as Allen's defense of the entertainments often derided by critics and other filmmakers of his stature. He received an Academy Award nomination for the screenplay.