The novel’s action takes place in a fishing village near the sea named Thul, located in a rural area in India. The novel follows the life of a small family forced to live in poverty. The parents are unable to take care of their four children—the mother is sick with an unknown illness and the father is given to drink and dissolution—so the oldest two, Lila and Hari, assume the roles of adults in the house. Lila takes care of her mother and takes care of the house while her brother works in the fields in order to financially sustain his family.
The family ended up in this situation after Lila, Hari, Kamal, and Belu’s father was tricked into believing that if he paid a large sum of money, someone would find him a job in Goa. The man ran away with the money and the father stopped working and started drinking excessively, which put a strain on the family.
Hari begins to think about better ways in which he could help his family, and believes their prospects might get better when he hears that a factory will be built in their village. All of Hari’s friends are excited, but Hari tries to have a more realistic view on whether he will find work in the factory.
Their situation changes a bit when the de Silva family comes into the village. They are a rich family who vacation at their seaside home several times a year, and they always employ the children. Lila and Hari start helping them and become their servants. After finding out about their situation, Mr. de Silva offers Hari a job in Bombay as a car washer.
At first, Hari is suspicious of his offer but then analyzes his situation and reaches the conclusion that Lila will never be able to find a good husband without money and that it is now his responsibility to provide for his family.
The factory man begins to cause a stir when he tells Hari and other villagers about the major changes the fertilizer factory will bring: jobs for skilled people, land set aside for houses for the thousands who will flood in, the removal of rice and other crops, etc. This causes consternation among the villagers and soon a protest begins to form. A group of men led by the charismatic Adarkar decides to go to Bombay to speak with the government.
Hari is roused by the words of Adarkar and decides to go to Bombay to stand up for his people. He does not tell his sisters.
When he arrives in Bombay, he is stunned by the city—its buildings, its crowds, the smells and noises, the cars. He listens to Adarkar and other speakers but quickly realizes he has no role to play. All of a sudden he is aware of his impetuosity in coming here and he feels very alone. He remembers Mr. de Silva’s offer and manages to find the residence, but the rude servant tells him the de Silvas are not in town. A kindly watchman tells him he will take him to his friend Jagu.
Jagu agrees to let Hari work in his restaurant so Hari sends home a postcard letting his sisters know where he is and that he is going to bring his earnings to them. Life is hard for Hari in Bombay but he works hard. While working for Jagu, Hari meets Mr. Panwallah who takes Hari under his wing and starts to teach him how to make watches and how to repair them.
During the time Hari is in Bombay, Lila finds succor from the de Silva family. When they come for their vacation, Lila works for them. She asks Mr. de Silva to take her mother to the hospital when she hears he is driving that way, and he immediately agrees and says he will take care of everything. When Lila’s father hears of this, he yells at her in a drunken rage, but he goes to the hospital and remains at his wife’s side. He also gives up drinking and is much more subdued. Lila visits every week, and her mother improves more and more.
The de Silvas depart, but another guest stays in the home—a venerable political leader studying birds that, coincidentally, Hari heard speak in Bombay. He is quiet and kindly and pays the girls well.
Monsoon season is hard for both Hari in Bombay and the villagers by the sea. When Hari hears on the radio that fishing boats out of Alibagh were lost in a storm, he decides he must return home. He knows he belongs with his family by the sea. He decides to go at Diwali, and continues to learn the watchmaking trade from Mr. Panwallah in the interim.
Hari returns and has an emotional reunion with his sisters. He is stunned to hear of his mother’s improvement and his father’s sobriety. He tells Lila that he has decided to start a small business raising animals while thinking that he will open his own watch shop in the future; both business options are good for when the factory crowds come.
Hari visits his mother in the hospital and is thrilled to see that the years of illness have fallen away. His father also seems pleased to see him in his own gruff way. Hari and his father are able to take Mother home for Diwali.
The celebrations are delightful and heartwarming for the family. Hari slips away for a moment during the preparations to see the man at the Mon Repos. He talks with him briefly about bird watching and suddenly realizes that he is Sayyid Ali, the impassioned speaker from Bombay. Ali is kindly like Mr. Panwallah but expresses sadness about the changes coming to Alibagh. Hari tells him what he is doing and Ali perks up, admiring Hari’s will to adapt.
The novel ends with the family contentedly celebrating, grateful for the positive changes in their lives.