die Handlung
plot
The sequence of events and happenings in a story, film, play, or book; the plot.
Die Handlung des Romans spielt im 19. Jahrhundert in Paris.
The plot of the novel is set in 19th-century Paris.

plot / action
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plot
The sequence of events and happenings in a story, film, play, or book; the plot.
Die Handlung des Romans spielt im 19. Jahrhundert in Paris.
The plot of the novel is set in 19th-century Paris.

'Die Handlung' (the action / plot) is the noun formed from the verb 'handeln' (to act). It describes an act or the sequence of acts in a story.
Jede gute Handlung verdient Anerkennung.
Every good deed deserves recognition.
Pay attention to the context: when talking about books or films, it refers to the plot. In a moral or legal context, it refers to an act. In words like 'Buchhandlung' (bookshop), it refers to a shop.
Die Handlung des Films war von Anfang an spannend.
The plot of the film was exciting from the beginning.
In this meaning, 'Handlung' (plot) is often described with adjectives such as 'spannend' (exciting), 'komplex' (complex), or 'langweilig' (boring). A single part of the story is called a 'Handlungsstrang' (storyline).
Der Roman hat eine sehr komplexe Handlung mit vielen überraschenden Wendungen.
The novel has a very complex plot with many surprising twists.
When 'Handlung' (action) describes a single act, it is often evaluated with moral or legal adjectives, e.g., 'gut' (good), 'böse' (evil), 'illegal' (illegal), or 'verantwortungsvoll' (responsible).
Eine Entschuldigung wäre jetzt die einzig richtige Handlung.
An apology would now be the only right action.
The meaning 'Geschäft' (shop/business) is outdated today when the word 'Handlung' (shop) stands on its own. However, it is still very much alive as an ending in words like 'Buchhandlung' (bookshop), 'Weinhandlung' (wine shop), or 'Tierhandlung' (pet shop).
Ich kaufe meine Stifte immer in der Schreibwarenhandlung.
I always buy my pens at the stationery shop.
story / history
'die Geschichte' and 'die Handlung' can both have to do with the content of a book, film, or play. 'die Geschichte' means the story as a whole: what it is about, which characters appear, and what you experience. 'die Handlung' means more specifically the sequence of events within this story. So you talk about the plot when you want to explain what happens one thing after another. Learners may confuse the words because both point to the content. In practical terms: a Geschichte is told; the Handlung describes the sequence of events in that story.

Die Handlung des Films ist leicht zu verstehen, obwohl viele Figuren vorkommen.
The plot of the film is easy to understand, even though there are many characters.
Finn hat nach der Arbeit eine spannende Geschichte vorgelesen.
After work, Finn read an exciting story aloud.