A disparate group of British retirees decide to "outsource" their retirement to less expensive and seemingly exotic India, enticed by advertisements for a newly restored hotel called The Best Exotic Marigold Hotel. Upon arrival, they find the palace a shell of its former self and far from luxurious as it had been depicted. The new environment presents challenges for the retirees, forcing them to deal with cultural shock, personal trials, and disappointing expectations. Despite initial struggles, they gradually adapt and find beauty in their surroundings, while forging new friendships and rediscovering themselves.

Evelyn, a widow searching for new experiences, grows more independent; Douglas and Jean, married yet unhappy, face the strains in their relationship; Muriel, a former housekeeper with racist tendencies, undergoes a significant attitude change; and Madge and Norman look for romantic connections. Meanwhile, the hotel's young, enthusiastic manager, Sonny, aspires to fulfill his dream of restoring the hotel to its former glory, all while dealing with family pressures and his own love life. Each character navigates their personal journeys of transformation, showing a shared resilience and an unexpected capacity for change.