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August Fools is a romantic comedy set against the political background of the Cold War. Elsa (Kati Outinen), a middle-aged hat maker and part-time clairvoyant, is apparently in total control of her life - until the man she once loved and lost walks in through the door of her Helsinki hat shop in 1962. Jan (Miroslav Etzler), a Czech jazz musician, is in town to perform at the "International Festival of Peace and Friendship of the Youth of the World." For more than two decades Elsa believed the man was dead. Elsa initially wants to stay away from Jan - and especially from the Festival, which for her is just another attempt by the International Communists to brainwash the good, unsuspecting citizens of Western countries, such as Finland. But Jan is persistent, persuasive and charming. As Elsa eventually overcomes her fear of love and commitment, she realizes there is only one solution if the two of them want to be together for more than the seven days of the Festival.