After learning of his brother's death, Larry Talbot returns to his ancestral home in Wales to reconcile with his estranged father, Sir John Talbot. While adjusting to his new surroundings, he becomes infatuated with Gwen Conliffe, a local antique shop owner. As he attempts to integrate himself into the community, he visits a gypsy camp with Gwen and her friend to have their fortunes told. During the visit, a series of frightful events unfolds as a wolf attacks the camp, biting Larry as he valiantly intervenes to protect Gwen's friend. The bite leaves Larry wounded, but the creature is killed by Sir John with a silver-headed walking stick.

The morning after the attack, Larry finds his wounds mysteriously healed and learns that the gypsy woman's son, who is also a werewolf, was the creature that bit him. Becoming increasingly disturbed by the implications, he is met with skepticism from the villagers and his own father when he voices his concerns. Nonetheless, evidence mounts suggesting that the werewolf's curse has been passed to Larry. As the full moon approaches, tension escalates, and Larry fears the worst about his fate. Meanwhile, the quaint village is plagued by a series of attacks, resulting in a heightened atmosphere of fear and suspicions, while Larry is left to grapple with the horrific reality of the ancient curse that has befallen him.