The story is set in the fictional city of Chandrapore, British India during the 1920s. It centers around Dr. Aziz, a young Muslim physician, and his interactions with English visitors Mrs. Moore and Adela Quested.
Mrs. Moore and Adela arrive hoping to experience the "real" India. Adela is set to marry Mrs. Moore's son Ronny, the city magistrate. At a mosque, Aziz has a pleasant encounter with the elderly Mrs. Moore. However, cultural misunderstandings and growing tensions arise when Aziz organizes an excursion to the Marabar Caves for the visitors. During the trip, Adela accuses Aziz of attempting to sexually assault her in one of the caves, leading to his arrest and trial.
The trial exposes the deep racial and cultural divides between the British and Indians. Adela eventually retracts her accusation, but the relationships are strained. Aziz's friendship with Fielding, the more open-minded principal, suffers due to the incident.
The novel ends on an ambiguous note, suggesting that true friendship across the colonial divide may one day be possible, but not under colonial rule.