At first glance, "Araby" may be perplexing because it lacks significant plot developments. The protagonist, who is around 12 years old and reflecting on his past, reminisces about a time when he was enamored with his neighbor Mangan's sister, whose name remains unknown. Despite his vivid imagination and strong feelings towards her, the boy struggles to demonstrate his love for her.

The boy observes the object of his desire quietly, without speaking to her. Finally, the girl speaks to him and asks if he will be visiting a unique community bazaar (market) with an Arabian theme named Araby. She informs him that she wishes to go, but cannot as she has to participate in a religious retreat. The boy assures her that he will bring back a keepsake for her. The boy experiences a mixture of thrill and fear upon making this pledge and realizing the significance of his promise.

The boy is very nervous and unable to focus on the day of the Araby fair because he is worried his uncle might forget to give him some money. Unfortunately, his fears are realized when his uncle comes home late, and the boy is afraid he won't be able to go to the fair. However, his aunt steps in and convinces his uncle to let him go, and he takes a late train to the fairgrounds.

As the boy steps into Araby, he experiences a sense of unease due to the store's dim and empty atmosphere. He has arrived late and many of the stalls are already closed. This feeling causes him to momentarily forget his purpose for being there and he must refocus his attention on his task. Eventually, he stumbles upon a gift counter that has items suitable for Mangan's sister, but the boy despairs as the items are too expensive. He rejects the offer of assistance from an English shopgirl as he begins to realize he will not fulfill his promise. After she keeps a watchful eye on him, he becomes completely disheartened and leaves the store, having given up on his mission and regretting the commitments he made. The story concludes with the famous line, "Gazing up into the darkness I saw myself as a creature driven and derided by vanity; and my eyes burned with anguish and anger."