A one-dimensional displacement second-gradient damage continuum theory has been already presented within the framework of a variational approach. Damage is associated with strain concentration. Therefore, not only non-local effects of displacement second-gradient modelling should be considered in a comprehensive model, but also any plastic effects. The aim of this paper is therefore to extend such a model to plasticity. The action is intended to depend not only with respect to first and second gradient of displacement field and to a scalar damage field, but also to further two internal variables, i.e. the accumulated plastic tension and the accumulated plastic compression. A constitutive prescription on the stiffness is given in terms of the scalar damage parameter in a usual way, i.e. as in many other works, it is prescribed to decrease as far as the damage increases. On the other hand, the microstructural material length (i.e. the square of the constitutive function in front of the squared displacement second-gradient term in the action functional) is prescribed to increase as far as the damage increases, being this last assumption connected to the interpretation that a damage state induces a microstructure in the continuum and that such a microstructure is more important as far as the damage increases. Initial damage threshold and yield stresses are naturally introduced in the action in front of linear terms, respectively, of damage and plastic internal variables. The hardening matrix is also introduced in a natural way as the coefficient matrix in front of the quadratic terms of the two plastic internal variables. At a given value of damage and plastic parameters, the behaviour is referred to second-gradient linear elastic material. However, the damage and plastic evolutions make the model not only nonlinear, but also inelastic. The second principle of thermodynamics is considered by assuming that the scalar damage and plastic parameters do not decrease their values in the process of deformation, and this implies a dissipation for the elastic strain energy. A novel result of this investigation, where displacement second-gradient and plastic effects are combined, is that the distributed and concentrated external double forces do not make work on the displacement gradient but only to its elastic part and this means that the displacement gradient cannot be prescribed, at the border, independently of the plastic internal variables.