Sonny Kapoor dreams of expanding his successful venture, The Best Exotic Marigold Hotel, by opening a second location. With his upcoming wedding to Sunaina adding to the pressure, Sonny seeks funding from an American company. As he juggles preparations for both the grand wedding and the potential investment, a new guest, Guy Chambers, arrives at the hotel. Guy's arrival creates excitement and speculation among the residents, who believe he is an incognito hotel inspector assessing the viability of the expansion. Meanwhile, returning guests like Evelyn and Douglas consider their future prospects, both at the hotel and in their personal lives.

Norman and Carol navigate the complexities of their relationship, while Madge is torn between two wealthy suitors. The hotel staff and residents face various challenges and misunderstandings, leading to moments of humor and introspection. Amidst the chaos, Sonny's business aspirations are put to the test as he confronts obstacles and learns valuable lessons about ambition and management. As the film progresses, we witness how these diverse characters support one another, celebrating their shared joys and overcoming personal hurdles, all within the vibrant backdrop of their beloved Indian sanctuary.