The Egypt Game begins with April Hall, a young girl sent to live with her grandmother, Caroline, in a California college town while her mother pursues an acting career in Hollywood. Adjusting to her new life, April befriends Melanie Ross, a girl who lives in the same apartment complex. The two quickly discover their shared fascination with ancient Egypt.
This shared interest leads them to create an elaborate imaginative game, "The Egypt Game," set in an abandoned storage yard behind an antique shop called the A-Z Shop. They recreate the world of ancient Egypt, complete with pharaohs, queens, and high priests. They even go so far as to create their hieroglyphs and perform made-up ceremonies. As the game evolves, more children are drawn into their imaginative world: Melanie's younger brother, Marshall, and two boys from their apartment building, Ken Kamata and Toby Alvillar. The children form a tightly knit group, with their shared fascination for the Egypt Game serving as a bonding experience.
However, their idyllic world is threatened when a local child murderer strikes fear in the community, and parents caution their children about going outside alone. Once a joyful escape, the Egypt Game becomes shrouded in fear and secrecy. The children can only play in their Egyptian playground when the Professor, the owner of the A-Z Shop, isn't around.
The story takes another surprising turn when the children find fresh artifacts in their playground, suggesting someone else has been there. After initial apprehension, they discover that the Professor has been adding to their game. He is revealed as a lonely man who enjoys watching the children's imagination and creativity.
Towards the end of the novel, danger strikes close when the murderer attempts to kidnap April. However, the day is saved by Marshall's cherished stuffed octopus, Security. The seemingly inconsequential toy distracts the murderer, giving the children time to escape and notify the authorities, leading to the man's arrest.
Following this ordeal, the Professor invites the children to openly continue their Egypt Game in his yard and even provides them with more Egyptian artifacts to enrich their game. The children's imaginative world of ancient Egypt thriving, offering them countless adventures and the freedom to learn and grow together.