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Grand Theft Auto IVfollows the story of Niko Bellic a thirty-year-old veteran of an unnamed war in Eastern Europe, who is haunted by the betrayal of his 15 man army unit. Ten years later, after a smuggling run goes bad due to a betrayal from a partner, Niko leaves Eastern Europeto escape the anger of his employer, Ray Bulgarin. Under persuasion from his cousin Roman, Niko comes to Liberty City to pursue the American Dream as well as Florian Cravic, the man he believes to be the traitor. After his arrival, however, Niko quickly learns that Roman's tales of riches and luxury were lies concealing struggles with gambling debts and loansharks.

Niko defends Roman from his loansharks several times, eventually killing Vlad Glebov, Roman's Russian loanshark, for having sex with Roman's girlfriend Mallorie. Niko also begins dating a girl named Michelle and befriends Jamaican drug and arms dealer "Little" Jacob Hughes and steroid junkie chop shop owner Bruce "Brucie" Kibbutz.

After Vlad's murder, Niko and Roman are kidnapped by members of the Liberty City Bratva on order of Mikhail Faustin and his associate, Dimitri Rascalov. However Faustin is not angry with Niko for killing Vlad, and instead hires him. Niko quickly learns that Faustin is a psychopath when Faustin orders him to kill the son of Kenny Petrović, the most powerful man in the Liberty City Bratva. Dimitri tries to negotiate an agreement, but Petrović demands revenge and Dimitri is forced to have Niko assassinate Faustin. However, when Niko meets with Dimitri to collect on the assassination, Dimitri betrays Niko to his angry former employer Ray Bulgarin. Niko manages to fight his way through the ambush but Dimitri and Bulgarin escape.

Immediately afterwards Niko and Roman are forced to escape to Bohan when their apartment and taxi company are destroyed in arson attacks by Dimitri's men. To make ends meet Niko takes jobs for former gangbanger Manny Escuela, prominent drug dealer Elizabeta Torres, Irish mobster Packie McReary, and Algonquin drug dealer Playboy X. Niko also becomes an errand boy for both Mafia Capo Ray Boccino and crooked Deputy Police Commissioner Francis McReary.

However, things go poorly in Bohan: one of the drug deals that Niko is working for Elizabeta turns out to be a sting and another is busted. Niko's current girlfriend Michelle then reveals that she works for a government agency and entraps Niko into working for Michelle's agency, known only by its cover: United Liberty Paper. Niko kills several known or suspected terrorists for the agency in exchange for the promise of assistance in finding the man who betrayed Niko's unit. The Liberty City Police Department begin to close in on Elizabeta, who kills Manny Escuela when he attempts a citizens arrest. Soon afterwards Elizabeta is arrested and, according to Weazel News, sentenced to 300 years imprisonment.

Niko assists Ray Boccino in a conflict diamond deal with Jewish Mafia Capo and diamond dealer Isaac Roth, which goes badly and leads to the diamonds being stolen by Luis Lopez and the money being stolen by Johnny Klebitz. In retaliation Boccino sends Niko to kill Roth and Johnny's friend Jim Fitzgerald.

In exchange for Niko's help, Boccino locates Florian Cravic, the man that Niko has been searching for. But when Niko confronts Cravic he discovers that Florian has changed his name to Bernie Crane and become an effeminate homosexual. Niko immediately determines that Bernie is not the person responsible for his unit's betrayal, leaving him one remaining suspect: Darko Brevic

Niko also works for both Playboy X and Playboy's mentor Dwayne Forge. After Niko kills Playboy's business partners as a favour for Forge, the relationship between Playboy and Forge becomes so poisonous that each asks Niko to kill the other, leaving Niko a choice between the two.

While in Algonquin Niko develops a strong connection with the McReary family, including Packie's older brothers Gerald and Derrick, and their sister Kate, with whom he begins a non-sexual relationship. Together Niko, Packie, and Derrick, along with "Saint" Michael Keane, heist the Bank of Liberty in Algonquin. However, the robbery does not go smoothly; Michael is killed and the others are forced to shoot their way out past the police to escape. After the robbery Niko works with Gerry McReary to destroy the relationship between the Ancelotti Crime Family and their Albanian muscle-men.

Meanwhile Derrick spends most of his share on drugs and alcohol, and sends Niko to eliminate former partners he believes are informing on him. Soon Francis McReary becomes concerned that Derrick's drug behaviour could ruin his plans to become police commissioner, and tells Niko to kill Derrick. Soon after Derrick asks Niko to kill Francis first giving Niko a choice between the two. In either case Niko is invited to the McReary funeral and informed that Gerry has been arrested.

After his incarceration, Gerry contacts Niko and asks him to help in the kidnapping of Gracie, the daughter of the Don of the Ancelloti Family, in exchange for a ransom of the "cursed" conflict diamonds stolen by Luis Lopez. However after exchanging Grace to Gay Tony for the diamonds, Niko and Packie are surprised by Ray Bulgarin, who claims the diamonds are his. In the ensuing gunfight the diamonds are thrown into a passing dumptruck and lost.

Niko also does work for the Pegorino family in Alderney, mainly with Associate Phil Bell, stealing heroin, and later for Don Jimmy Pegorino. This leads to a war between the Pegorinos, Pavanos, and Ancellottis. Eventually, after working for Pegorino several times, Niko is sent to kill Ray Boccino because Pegorino is convinced Boccino is an informant.

Toward the end of the story, United Liberty Paper locates Darko Brevic and brings him to Liberty City as a final reward. Niko confronts Darko, who is now a drug-addicted wreck, and learns that Darko betrayed the group for $1,000. The player is then left with the option of either executing or sparing Darko. Having dealt with his past Niko is summoned by Pegorino, who demands one final favour: to help with an extremely lucrative deal on the heroin in collusion with Dimitri Rascalov

Nine years after killing Vladimir Lem, Max Payne has retired from his job in the NYPD, moved to Hoboken, New Jersey and has developed an addiction to alcohol and painkillers. Max gets into a confrontation at a bar with Anthony DeMarco Jr., the son of a local mob boss, and Raul Passos interjects, hoping to recruit Max for a private security job in South America. Max initially resists, but when he becomes a target for mob hitmen after he kills Anthony Jr. in a bar fight, he agrees to accompany Passos to Brazil.

Max and Passos work for the wealthy Branco family in São Paulo, made up of three brothers: the businessman Rodrigo, the politician Victor, and the partying Marcelo. During a party held in Rodrigo's penthouse, Rodrigo and his wife Fabiana are kidnapped by a street gang called the Comando Sombra, but Max saves them. Fabiana, her sister (and Passos' lover) Giovanna, and Marcelo are later again targeted at a nightclub by the same gang, who successfully kidnap Fabiana. Max and Passos bring ransom money to the gang at a football stadium, but the deal is ambushed by an outlaw right-wing paramilitary group known as Crachá Preto, who steal the money. Max and Passos decide to raid a Comando Sombra base to save Fabiana, but the gang escapes with her.

As Max and Passos discuss the situation with Rodrigo, Victor and Armando Becker, the local battalion commander of a special police unit Unidade de Forças Especiais (UFE), Crachá Preto raid the Branco offices. An unknown assassin breaks into Rodrigo's secured office and assassinates him. A bomb then explodes in the building, but Max escapes, learning that Fabiana is in one of São Paulo's favelas and that Max was the true target of the raid.

Blaming himself for everything that happened to the Brancos, Max chooses to abstain from alcohol and shave his head to disguise himself for another rescue attempt of Fabiana. Local detective Wilson Da Silva informs him that Crachá Preto had nefarious links with Rodrigo, who hired them to clear out villages on a piece of land he wished to turn into a retail development. Da Silva explains he thinks the UFE and Victor are all connected to Max's predicament.

Max finds Fabiana with Marcelo and Giovanna, who were also kidnapped when trying to pay the ransom for Fabiana themselves. Comando Sombra's leader Serrano executes Fabiana and escapes with Giovanna and Marcelo. As Max gives chase, the UFE raid the favela; he witnesses the Crachá Preto and the UFE exchanging money for those who were arrested in the raids for an unknown reason. Max finds Marcelo and Giovanna in the hands of the Crachá Preto's second-in-command Milo Rego. Marcelo is burned to death in a gang-like ritual manner so the UFE can have an excuse to raid. Max kills Milo and saves Giovanna. Passos later arrives to pick them up by helicopter, but flees with Giovanna and leaves Max behind, who is saved by Da Silva.

A flashback shows Max and Passos in the Panama Canal protecting Marcelo at a yacht party that is raided by guerrilla pirates. Max finds them trying to gain access to a hidden stash within the boat. Max is unsure what the contents were, but it is clear that it is no longer there; Max later found Marcelo and Passos trying to drive away with the unknown cargo. It hits Max that he was recruited by Passos to be the "fall guy" for whatever illicit activity the Brancos were involved in.

Da Silva informs Max about a rundown hotel where the Crachá Preto and the UFE are seen entering with prisoners, yet none leave. Max discovers it is the base for a black market organ theft ring and corrupt UFE officers were being paid to transport arrested individuals for organ harvesting. Max finds Serrano as one of the victims and spares him, allowing him to take revenge on the surgeon performing the harvesting. Max sets explosives to destroy the entire complex, and Passos manages to kill the Crachá Preto leader Álvaro Neves before he shoots Max. Max discovers Passos was unaware of the plan to set up Max. He forgives Passos, who leaves Brazil with a pregnant Giovanna, asking Max to get over his past and move on.

Da Silva concludes that Becker and Victor are behind everything and asks Max to handle it, as there is too much corruption for Da Silva to stop them legally. Max battles his way through the UFE building, discovering that Becker's UFE unit are the perpetrators for Rodrigo's assassination. Victor explains to Max that he wanted more money from his brother for his political campaign: he told the Crachá Preto to ambush the money exchange at the stadium, which went toward funding the organ harvesting ring, the profits of which helped fund his campaign.

Victor and Becker escape to the airport with Max in pursuit. After an intense shootout, Max arrives at the hangar where Becker and Victor are preparing to board a jet. Becker tries to use a grenade launcher to kill Max, but ends up burning himself with his left arm severed when Max shoots at one of the fired grenades. Eventually, the player can choose to kill Becker or let him die from his wounds. Max then grabs the grenade launcher and, with Da Silva's help, uses it to disable Victor's plane. Da Silva persuades Max to spare Victor so he can live in shame. Victor taunts Max, who responds with breaking Victor's leg. A week later, Max watches the news on a beach in Bahia. It reports that Becker's UFE battalion have been disbanded indefinitely due to their ties to the organ harvesting ring, while Victor is found hanged in his cell. The last shot of the game is Max walking along the beach, enjoying his vacation and ready to move on with his life.