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Set against the backdrop of the underground music and art scenes in New York, "Margarita Happy Hour" is a film about life after the party. Five "disreputable" young women meet in the late afternoon hours of half price drink specials and jabber uninhibitedly about life, libidos, and lactation. The heroine of this real life "Sex and the City" quintet is Zelda (Eleanor Hutchins), an artist and unwed mother struggling to hold on to her persona as sexy, rock star-seducing siren. To make ends meet, Zelda works as a porno-mag illustrator and shares a communal Brooklyn loft infested with drug-addled hipsters and scene queens. Her once fiery romance with her boyfriend Max (Larry Fessenden), a street-fighting, caffeine fueled washed-up poet is on the rocks as he struggles to live up to the challenges of modern fatherhood. To aggravate matters, Zelda's best friend Natali (Holly Ramos) moves in to recover from the damage of her rock'n'roll lifestyle. At first, Max is angered by this intrusion into their already delicate balance of personalities, but later finds himself becoming strangely attracted to Natali. Meanwhile, Zelda begins to falter in her attempts to care for everyone's needs. When events take an irreversible turn, Zelda is forced to decide whether to remain trapped by the illusions of youth or break out of the cycle.