The main character is a former drug addict and robber who escaped from an Australian prison where he served a 19-year sentence. After spending some time in Australia and New Zealand, he arrives in Bombay under a false passport in the name of Lindsay Ford. Thanks to his personal qualities, he quickly makes acquaintances and friends among the local residents and foreigners living in Bombay. A peasant woman—the mother of his Indian friend—gives him an Indian name, Shantaram, which in translation from Marathi means “a peaceful person” or “a person to whom God granted a peaceful fate.” He earns his living by acting as an intermediary in small illegal deals. He settles in the slums, where he provides medical help to their inhabitants. He makes many connections in criminal circles. After a denunciation, he ends up in prison, where he spends 4 months in terrible conditions. After his release, he begins working for the major Bombay mob boss Abdell Kader Khan, to whom he feels almost like a son.
Lindsay is involved in illegal currency and gold trading, and then in forged passports. In a short period of time, two of his closest friends die. Unable to recover from the tragedy, Lindsay spends 3 months in a den, using heroin. Kader Khan pulls him out, helping him overcome the drug dependence that has returned. Then he offers to go together to Afghanistan—Kader’s homeland occupied by Soviet troops. Lindsay agrees. Their caravan carries tools, weapons, and medicines for a group of mujahideen fighters fighting not far from Kandahar.
In Afghanistan, Kader Khan and most of his unit die. Lindsay manages to return to Bombay, where he continues to cooperate with the mafia.
The novel alternates descriptions of the main character’s experiences and philosophical reflections. The characters often express their thoughts in aphoristic form.