Recently widowed housewife Evelyn (Judi Dench) must sell her home to cover huge debts left by her late husband. Graham (Tom Wilkinson), a high-court judge who had spent his first eighteen years in India, abruptly decides to retire and return there. Jean (Penelope Wilton) and Douglas (Bill Nighy) seek a retirement they can afford, having lost most of their savings through investing in their daughter's internet business. Muriel (Maggie Smith), a retired housekeeper prejudiced against Indians, needs a hip replacement operation which can be done far more quickly and inexpensively in India. Madge (Celia Imrie) is hunting for another husband, and Norman (Ronald Pickup), an aging Lothario, is trying to recapture his youth. They each decide on a retirement hotel in India, based on pictures on its website.
When the group arrives at the picturesque hotel, they find an energetic young manager Sonny (Dev Patel) but a dilapidated facility, not yet what he had promised. Overwhelmed by the cultural changes, Jean often stays inside at the hotel, while her husband Douglas explores the sights. Graham finds that the area has greatly changed since his youth and disappears on long outings every day. Muriel, despite her xenophobia, starts to appreciate her doctor for his skill and the hotel maid for her good service. Evelyn gets a job advising the staff of a call centre on how to interact with older British customers. Sonny struggles to raise funds to renovate the hotel and sees his girlfriend Sunaina (Tena Desae), despite his mother's disapproval. Madge joins the Viceroy Club seeking a spouse, where she is surprised to find Norman. She introduces him to Carol (Diana Hardcastle). He admits he is lonely and seeking a companion, and the two begin an affair.
Graham confides in Evelyn that he is trying to find the Indian lover he was forced to abandon as a youth. Social-climber Jean is attracted to Graham, and makes a rare excursion to follow him, but is humiliated when he explains he is gay. Graham reunites with his former lover, who is in an arranged marriage of mutual trust and respect. Reconciled, the Englishman dies of an existing heart condition. Evelyn and Douglas grow increasingly close, angering his wife, which results in an outburst from Douglas denouncing this marriage. Muriel reveals that she was once housekeeper to a family who had her train her younger replacement and now, having been forced out of the home and into retirement, she feels that she has lost any purpose in her life.
Sonny's more successful brothers each own a third of the hotel and plan to demolish it. His mother (Lillete Dubey) agrees and wants him to return to Delhi for an arranged marriage. Jean and Douglas prepare to return to England after money is found through their daughter's company. Jean eagerly awaits returning to England, but Douglas is more hesitant. Now that the hotel is closing against Sonny's wishes and pleas, Madge prepares to return to England, and Norman agrees to move in with Carol. Madge, after encouragement from Carol and Muriel, decides to keep searching for another husband.
Sonny, encouraged by Evelyn, finally tells Sunaina that he loves her. He confronts his mother, who first forbids the match but then is persuaded by Young Wasim, who speaks no English. He explains that he once knew another man who wanted to marry a smart beautiful woman against his family's wishes. Sonny's mother interprets for Young Wasim, realizing he is talking about her, and she finally gives the couple her blessing. She asks Sunaina to take good care of her "favourite son". Before the remaining guests can leave, Muriel reveals that her experience running the family's household gave her the knowledge how to balance a budget and that the hotel can make a profit. She approaches Sonny's investor privately and then invites him to visit the hotel to discuss matters with Sonny. The investor agrees to fund Sonny's plans for renovation so long as Muriel stays on as an assistant manager.
All the guests agree to stay   except Jean and Douglas. Due to their daughter's long-awaited success, they decide to return home but on the way to the airport, their taxi gets caught in a traffic jam. A rickshaw driver says that he can take only one of them. Jean sees it as a sign that it is time to split with Douglas; she bids him farewell and departs. He winds up at another hotel, discovering that it's nothing more than a brothel and drug den, and spends the rest of the night wandering the streets. He returns to the hotel just as Evelyn is leaving for work, and asks when she'll be back. A closing montage with a voiceover shows Muriel checking in customers in an elegant renovated lobby, Madge dining with a handsome older Indian man, and Norman and Carol living happily together. Sonny and Sunaina are shown riding a motorbike and passing Douglas and Evelyn on another bike.
Output: Why was Jean upset with Douglas?