In 1910 Nischindipur, rural Bengal, Harihar Roy earns a meagre living as a pujari (priest) but dreams of a better career as a poet and playwright. His wife Sarbajaya cares for their children, Durga and Apu, and Harihar's elderly cousin, Indir Thakrun. Because of their limited resources, Sarbajaya resents having to share her home with the old Indir, who often steals food from their already bare kitchen. Durga is fond of Indir and often gives her fruit stolen from a wealthy neighbour's orchard. One day, the neighbour's wife accuses Durga of stealing a bead necklace (which Durga denies) and blames Sarbajaya for encouraging her tendency to steal.
As the elder sibling, Durga cares for Apu with motherly affection but spares no opportunity to tease him. Together, they share life's simple joys: sitting quietly under a tree, viewing pictures in a travelling vendor's bioscope, running after the candy man who passes through, and watching a jatra (folk theatre) performed by an acting troupe. Every evening, they are delighted by the sound of a distant train's whistle.
Sarbajaya's grows increasingly resentful of Indir and becomes more openly hostile, which causes Indir to take temporary refuge in the home of another relative. One day, while Durga and Apu run to catch a glimpse of the train, Indir—who is feeling unwell—goes back home, and the children find she has passed away upon their return.
With prospects drying up in the village, Harihar travels to the city to seek a better job. He promises that he will return with money to repair their dilapidated house, but is gone longer than expected. During his absence, the family sinks deeper into poverty, and Sarbajaya grows increasingly desperate and anxious. One day during the monsoon season, Durga plays in the downpour, catches a cold and develops a high fever. Her condition worsens as a thunderstorm batters the crumbling house with rain and wind, and she dies the next morning.
Harihar returns home and starts to show Sarbajaya the merchandise he has brought from the city. A silent Sarbajaya breaks down at her husband's feet, and Harihar cries out in grief as he discovers that Durga has died. The family decide to leave their ancestral home for Benaras. As they pack, Apu finds the necklace Durga had earlier denied stealing; he throws it into a pond. Apu and his parents leave the village on an ox-cart, while a snake is seen slithering into their, now barren, house.
