Sisters Satsuki (aged 10) and Mei (aged 4) moves to a rural Japanese village with their father, Tatsuo Kusakabe. Their mother, Yasuko, is recovering from an illness in a nearby hospital, and the move brings them closer to her while providing a peaceful environment. The girls are excited about their new home, which is surrounded by lush greenery and steeped in rustic charm. The house, however, is old and creaky, and the girls suspect it might be haunted. They soon encounter tiny, soot-like creatures called susuwatari (soot sprites) scurrying around the house. Their father explains that these harmless spirits inhabit empty places and will leave once the house is filled with laughter.
The sisters quickly adapt to country life, exploring their surroundings and meeting friendly neighbors, including Granny, an elderly woman who helps them settle in, and her young grandson, Kanta, who is shy but curious about the newcomers. The girls’ father encourages their curiosity and openness to the natural world, fostering their connection to the magical environment.
One day, Mei ventures into the nearby forest while playing outside. Following a trail of acorns, she discovers two small, rabbit-like creatures: one white and the other blue. She chases them through the woods and eventually falls through a hollow in a giant camphor tree. There, she encounters Totoro, a massive, cuddly forest spirit with a wide grin and a gentle demeanor. Mei is delighted and fearlessly introduces herself, calling him “Totoro” because she mispronounces the word “troll” from a storybook. Totoro doesn’t speak, but he communicates through growls and gestures, radiating warmth and friendliness.
Mei eagerly tells Satsuki and their father about her encounter, but they dismiss it as her imagination. However, Satsuki soon has her own encounter with Totoro while waiting for their father at a rural bus stop one rainy evening. As the rain pours, Satsuki and Mei share an umbrella, and Totoro appears beside them, holding a makeshift leaf over his head for shelter. Satsuki lends him their umbrella, and in return, Totoro gifts her a bundle of seeds wrapped in a cloth. Shortly after, a magical cat-shaped bus (the Catbus) arrives to transport Totoro away, leaving the girls awestruck.
The seeds Totoro gave them later sprout into a small garden. One night, Totoro and his smaller companions visit the sisters to help grow the plants, performing a ritual-like dance. The seeds magically grow into a giant tree, and Totoro takes the girls on a joyous ride through the sky on his spinning top-like vehicle. By morning, the tree has disappeared, but the seeds have sprouted into healthy plants.
Amid the magical adventures, the family faces real-world challenges. Yasuko’s illness delays her return home, leaving the girls anxious and longing for their mother. When a telegram arrives suggesting their mother’s condition has worsened, Satsuki becomes overwhelmed with worry and accidentally lashes out at Mei. Hurt and confused, Mei sets off on foot to visit her mother at the hospital, clutching an ear of corn she wants to give her as a gift to make her better.
When Mei doesn’t return, the family panics. Satsuki, overcome with guilt, organizes a search party but struggles to find her sister. Desperate, she runs to Totoro’s tree and pleads for his help. Totoro responds by summoning the Catbus, which whisks Satsuki away to find Mei. The magical bus, with its glowing eyes and soft, furry seats, navigates through the countryside at incredible speed, eventually locating Mei near a shrine.
Reunited, the sisters board the Catbus, which takes them to the hospital where their mother is staying. From a distance, they see their parents talking happily, indicating that Yasuko’s condition has not worsened and she is likely to recover soon. Relieved, the girls leave the ear of corn with a note for their mother before the Catbus takes them home.
Life returns to normal for the Kusakabe family. Yasuko prepares to come home, and the sisters continue their adventures in the countryside, their bond with Totoro and the forest spirits remaining a cherished secret. The final scenes capture the girls laughing and playing, a joyful celebration of family, nature, and childhood wonder.
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