A sinister stranger arrives in the small, quiet village of Iping, where he hires a room at the local inn. The innkeepers, Mr. and Mrs. Hall, are immediately unnerved by their guest's bizarre appearance, for his head is completely wrapped up in bandages, his eyes concealed by large dark goggles, and his body wrapped in a thick black coat despite the intense summer heat.
As the stranger's conduct becomes more and more suspicious and he falls behind with his rent, Mr. and Mrs. Hall begin to fear that his wrappings conceal a terrible secret.
When Mr. and Mrs. Hall decide to finally confront the stranger, they receive a dreadful shock when he peels back his bandages and reveals he is completely invisible. Escaping from the inn, The Invisible Man enlists the services of a reluctant tramp named Thomas Marvel to help him steal his research books from the inn.
After Thomas Marvel betrays the Invisible Man, the Invisible Man attempts to kill him but winds up being wounded by a gunshot. He flees to take refuge in the house of a young doctor named Kemp.
The Invisible Man reveals his true identity to Kemp- Griffin, Kemp's old university colleague. Recovering from the gunshot wound, he tells Kemp the story of how after leaving university, he discovered the formula for making himself invisible, but wound up alone and stray on the streets of London, struggling to survive in the open while unseen by those around him.
When Griffin reveals that he intends to begin a Reign of Terror and terrorize the vicinity with his invisibility, Kemp realizes that Griffin has been driven insane and summons the police. Feeling betrayed, Griffin announces that Kemp will be the first man killed in the Reign of Terror.