Moving between present and past, and narrated alternately in third-person and first-person, The Guide tells the life story of Raju. Born to a modest shopkeeper and his wife in the (fictional) town of Malgudi, India, Raju grows up at a time of great changes: most notable among them the construction of the railway line that comes to town in his childhood. The railway changes the family’s fortunes and Raju’s life forever. As a result of a second shop that Raju’s father opens in the railway station, the family prospers, and, after Raju’s father’s sudden death, Raju takes over the rail station shop to continue his father’s enterprise.

However, Raju doesn’t remain a shopkeeper for long. Soon, he takes to showing the many visitors who arrive at the railway station the sites of Malgudi. In re-inventing himself as a tourist guide, Raju often resorts to exaggerations and fabricated tales to impress his customers. His reputation as a guide grows to such an extent that he comes to be known as “Railway Raju,” sought out by tourists from far and wide.