Axel Heyst, the novel's protagonist, was raised by his widowed father, a Swedish philosopher, in London, England, and never knew his mother. The atmosphere of Heyst's home, with his father's ruthless pursuit of truth and pessimistic view of humanity, warps Heyst's mind, and after his father dies, he leaves England and becomes a rootless wanderer. This eventually leads him to the Southeastern Asia, especially to what is now Indonesia, including Surabaya—a port in the then-Dutch colony of Java.

Eventually, however, human feelings are awoken in Heyst by the plight of Captain Morrison, who faces the confiscation of his ship, and loss of his livelihood, because he cannot pay a fine levied by the Portuguese authorities. Heyst intervenes with a loan for a paltry sum, which establishes a relationship, and Heyst is unable to break this bond. This eventually leads to the establishment of The Tropical Belt Coal Company, of which Heyst becomes the manager, although he has no interest in this enterprise. Morrison subsequently visits England where he dies. Soon after the coal company goes bankrupt. Heyst however, remains at the site of the derelict coal mine, on the island of Samburan. There he lives the life of a hermit, with his Chinese servant, Wang.