Set in the 19th century, the film portrays the decline of a wealthy family of grain merchants in Lübeck, the Buddenbrooks, and with them a whole way of life as Germany changed radically.

The first to learn this is Tony who, after a holiday romance with a medical student from a modest family, is married off to Bendix Grünlich, a prominent businessman in Hamburg who shortly after goes bankrupt: Jean brings her home.

Thomas leaves his secret mistress, a florist's assistant, and although he does not love her marries Gerda, a Dutch heiress who is more interested in playing the violin and in consorting with aristocrats.

After having spent time in Valparaiso, Christian returns to Lübeck but shows no interest in the firm, preferring to drink and haunt the theatre, especially the actress Aline.

The divorced Tony catches the eye of Alois Permaneder, a cheerful Bavarian hop merchant who marries her and takes her off to his home in Munich.