Set in 1950s Japan, Tatsuo Kusakabe relocates his family to a rural house to stay close to his wife, who is hospitalized for a prolonged illness. His daughters, Satsuki and Mei, soon adapt to their new life in the countryside. One day, Mei pursues a small, rabbit-like creature into the woods, where she encounters Totoro, a gigantic, magical forest spirit, and they quickly forge a connection. Soon after, Satsuki also meets Totoro, and the two sisters share a series of whimsical adventures with nature and other forest spirits.