Satuski and Mei have recently moved to a countryside area of Japan with their Father. Their Mother has been rehabilitating at a nearby hospital and the move was made so that they could be closer to her, as well as to provide a better environment for her once she is allowed to go home. Although Satsuki and Mei were at first frightened by their new strange house, they soon discover that there is a magical presence there. Soon, they meet their new neighbour, a tree guardian named Totoro who lives in the forest behind their house, and together a wonderful adventure begins.