Several British retirees decide to move to Jaipur, India, to stay in the Best Exotic Marigold Hotel, advertised as an exotic retirement home. Evelyn Greenslade, a widowed housewife, must sell her house to pay off her husband's debts; Graham Dashwood, a High Court judge who lived in Jaipur as a child, abruptly retires to return there; Jean and Douglas Ainslie, hope to have an affordable retirement, after investing in their daughter's internet business; Muriel Donnelly, a former housekeeper, decides to have a cheaper hip operation in India; Madge Hardcastle, after several unsuccessful marriages, searches for new romance overseas; and Norman Cousins, an aging Lothario, tries to relive his youth.
After an eventful journey to Jaipur, the retirees discover the hotel is a dilapidated site, run by the energetic but inept manager, Sonny Kapoor. Sonny's mother moves into the hotel in the hope to convince her son to invest in a more secure job. Evelyn gets a job at a local call centre, where Sonny's girlfriend Sunaina, and her older brother Jay work. Graham takes long walks in search of familiar ground. While Jean hides in the hotel, overwhelmed by the cultural changes, Douglas explores the city. Muriel, at first xenophobic to Indians, comes to appreciate her doctor, and maid Anokhi. Madge joins the Viceroy Club, surprised to find Norman there, and helps him get into a relationship with a woman named Carol.
Graham confides to Evelyn that he is gay, returning to Jaipur to find his long lost Indian lover Manoj, whom he had to leave due to scandal. He, Evelyn, and Douglas eventually find Manoj, who has been happily married for years, but is overjoyed to see Graham again. Graham passes away from an existing heart condition. After Graham's funeral, Evelyn breaks down, in Douglas’ arms, over her husband's death. Jean, increasingly pessimistic and envious, accuses Douglas of having an affair, only for Douglas to denounce their marriage. Jean then reveals their daughter's business has paid off, and they can return home.
Sonny and Sunaina have a falling out over a misunderstanding when Madge sleeps in Sonny's bedroom, further worsened when Mrs. Kapoor rejects Sunaina. Sonny becomes disheartened and decides to close the hotel. Evelyn encourages Sonny to express his love to Sunaina. Together, they race to the hotel, announcing to Mrs. Kapoor their intention to marry, regardless of her approval. Young Wasim, a hotel employee, reminds Mrs. Kapoor she and her late husband were in a similar situation when they wished to marry against their families’ wishes. Moved, Mrs. Kapoor blesses Sonny's marriage.
Muriel, investigating the hotel's accounts, convinces an investor to keep the hotel open, but she will act as a deputy manager to help Sonny. The residents agree to remain in the hotel, Carol moving in with Norman. Jean, realising her marriage is dead, encourages Douglas to return to stay in the hotel, whilst she returns to England. After a night of wandering, Douglas returns to the hotel, much to Evelyn's joy. The hotel flourishes thanks to Sonny and Muriel's partnership, with the residents staying to enjoy their retirement, Evelyn commenting with the moral, “We get up in the morning, we do our best.”
Dev Patel as Sonny Kapoor, manager of the hotel.
Judi Dench as Evelyn Greenslade, a recently widowed housewife who moves to India after paying off her husband's debts.
Bill Nighy as Douglas Ainslie, Jean's laidback husband.
Penelope Wilton as Jean Ainslie, Douglas' pessimistic wife.
Maggie Smith as Muriel Donnelly, a former housekeeper who moves to India for a cheaper, quicker hip operation.
Tom Wilkinson as Sir Graham Dashwood, a High Court judge.
Tina Desai as Sunaina, call centre worker, and Sonny's girlfriend.
Ronald Pickup as Norman Cousins, an aged lothario.
Celia Imrie as Madge Hardcastle, a woman looking for a rich husband to marry.
Sid Makkar as Jay, Sunaina's brother, and manager of a call centre.
Lillete Dubey as Mrs. Kapoor, widowed mother of Sonny.
Diana Hardcastle as Carol, an English-Indian woman and lifelong resident of Jaipur.
Seema Azmi as Anokhi, a Dalit maid at the hotel who looks after Muriel.
Paul Bhattacharjee as Dr. Ghujarapartidar, one of Muriel's doctors.
Liza Tarbuck as head nurse Karen.
Denzil Smith as Mr Dhurana, the Viceroy Club Secretary
Honey Chhaya as Young Wasim, a hotel employee.
Bhuvnesh Shetty as Muriel's physiotherapist.