Howard Brackett (Kevin Kline) is a well-liked English literature teacher, living a quiet life in Greenleaf, Indiana, with his fiancée and fellow teacher Emily Montgomery (Joan Cusack). The town is filled with anticipation over the nomination of Cameron Drake (Matt Dillon), Brackett's former student, in the Best Actor category at the Academy Awards for his portrayal of a gay soldier in the war film 'To Serve and Protect'. Cameron does indeed win the Best Actor award, and in his acceptance speech, thanks Howard for his inspiration by adding: "and he's gay!"Howard's parents (Debbie Reynolds and Wilford Brimley), his cousins (Gregory Jbara, Kate McGregor-Stewart, Alice Drummond, Selma Blair), and friends (Debra Monk, Ernie Sabella, Joseph Maher, William Duell), fellow students (Shawn Hatosy, Zak Orth, Lauren Ambrose, Alexandra Holden), plus co-workers (Lewis J. Stadlen, Deborah Rush, Kevin Chamberlin), and fiancée are naturally shocked, but that is nothing compared to Howard's own reaction of disbelief and indignation, and he angrily tries to reassure those who know him that he is a heterosexual. The very next day reporters from all over the country invade his hometown, harassing him for interviews following the awards night telecast, and Howard is placed under the scrutiny of his boss, Principal Halliwell (Bob Newhart), who is uncomfortable with the attention being brought to the school.Although the other reporters leave over the next few days after getting their story when Howard tells them that he is not gay and the whole thing with Cameron's speach is a simple misunderstanding, one reporter stays behind. He is the openly gay Peter Malloy (Tom Selleck), who wants to wait the week out so he can cover Howard's wedding to Emily. Howard continues to be harassed and dismayed by the changed attitudes of everyone around him, and decides that he must sleep with Emily in order to prove his heterosexuality. Howard tries, but cannot go through with it all the way due to his conflicting emotions and Emily's concern for his well-being.Howard crosses paths with Peter, who tries to provide a helpful ear and narrates his own experience in coming out to his family. Peter thinks that Howard is in denial of his sexual orientation and wants him to be honest with not only himself, but everyone. Howard still insists that he is not gay, prompting Peter to kiss him. Although shocked, Howard reacts somewhat positively to the kiss, vindicating Peter's instinct all along on the matter. Peter tells Howard that if he still wants to get married (to a woman) Peter will not stop him, but he also tells Howard that he is hiding the true fact of who he is.Howard's final measure to restore his heterosexuality is the use of a self-help audio cassette, although that fails as well. During the wedding ceremony, Emily recites her vow without hesitation, but when Howard is prompted by the minister, he instead says, "I'm gay." The wedding is off, and although Peter is proud of Howard, Howard is angry with himself for hurting Emily. Things take a turn for the worse when he is fired from the school because of his outing.Despite being fired, Howard attends the graduation ceremony to support his students. When one student (Shawn Hatosy) who got into college with Howard's hard work, learns that he was dismissed for being gay, he and his classmates proclaim themselves, one by one, to be gay as well, to show their support of Howard and to thumb their noses at the school board. Howard's family follows suit, as do his friends, and all the townsfolk assembled.Having learned of the ensuing media blitz while in Los Angeles, Cameron Drake flies to his hometown, with his supermodel girlfriend (Shalom Harlow), to support his former teacher and although Howard doesn't win 'Teacher Of The Year', Cameron presents him with his Oscar as a gift.The film ends with Howard's wedding-crazy mother finally getting a wedding - her own, when she and her husband decide to renew their vows. Howard, Peter and the rest of the townsfolk attend the reception, and among the crowd are Emily and Cameron Drake, who appear to have begun a relationship. The film ends with everyone dancing to the Village People's song "Macho Man".