The story begins with the Chinese-Japanese war. The English consul Robert Conway leads the exodus of the western citizens of Baskul, a frontier town, towards Shanghai. On the plane there’s his younger brother George, Gloria, an exhausted cynical young girl, Barnard, a businessman, and Lovett, a palaeontological expert. The journey ends with a forced landing among the mountains of Tibet. A mysterious group of natives, led by Chang, take Conway and his companions to the mythical city of Shangri La. Conway is attracted and at the same time puzzled, but urged by his brother, who wants to leave the place together with a native girl, decides to flee the city during the Lama’s funeral. Once she’s outside the borders of the magical city, the girl undergoes a frightening transformation and ages in a few seconds, whilst George, overcome with shock, falls into a ravine.