The Bubble is as much a love song to their Tel Aviv neighborhood as it is an effervescent romance and a plea for peace. Lulu, Noam and his best friend Yali share a flat in the fashionably hip Sheikin Street neighborhood that is brimming with boutiques, galleries and cafes. Noam is drafted into the army reserve and one day, he catches the eye of a handsome Palestinian at the contentious border crossing he is assigned to.
The two men feel a connection and begin to meet secretly in Tel Aviv, beginning a dangerous affair. Lulu and Yali catch wind of the affair and they decide to help the Palestinian stay in Tel Aviv by giving him a Hebrew name and a job at the café. Bursting with youthful idealism and energy, the four get active in the peace movement, but as the outside forces add pressure to their pop culture enriched world of peace, freedom and love, their "bubble" could easily burst when years of unresovled conflicts rears its violent head.