A once-prominent family, the Tenenbaums, have become a fragmented echo of their former glory. Royal Tenenbaum, the patriarch, separated from his wife Etheline, was a disbarred lawyer and mostly absent father. He and Etheline raised three child prodigies – Chas, a finance genius; Margot, a playwright; and Richie, a tennis star. However, the children's extraordinary talents and early successes give way to a series of personal failures and disappointments in adulthood. Now, the family members are estranged, each grappling with their individual crises and the complicated legacies of their childhoods.

When Royal learns that Etheline, who remained the family's stabilizing force during his absence, is considering marrying her longtime accountant, Henry Sherman, Royal decides he wants to reconnect with his family. He fabricates a terminal illness in an attempt to win back their affections and move into the family home. As the estranged family members converge under one roof for the first time in years, they must navigate the minefield of their past relationships and unresolved issues. The reunion forces them to confront their feelings for one another as well as the influence their father had and continues to have on their troubled lives.