The Hindu sage Vishwamitra approaches king Harishchandra and informs him of a promise made by the king during the sage's dream to donate his entire kingdom. Being virtuous, Harishchandra immediately donates his entire kingdom to the sage and walks away with his wife Saibya and son Rohitashwa. As the entire world came to the control of the sage, after Harishchandra donated his kingdom, the king had to go to Varanasi, a holy town dedicated to Lord Shiva which was the only place outside the influence of the sage. As a part of donation, the sage claims an additional amount as "Dakshina" (honorarium) to be paid to complete the act of donation. As Harishchandra does not have anything left for himself, he sells his wife and son to a Brahmin family to pay for the Dakshina. However, the money collected was not sufficient enough for sage and then Harishchandra sells himself to the guard at the cremation ground.
While working as a servant for a Brahmin family, Harishchandra's son gets bitten by a snake while plucking the flowers for his master's prayer, he then dies. Taramati takes his body to the cremation grounds where Harishchandra is working. She does not have sufficient money to pay to perform the rites and Harishchandra does not recognize his wife and son. He advises Taramati to sell off her Mangalsutra, a symbolism of marriage in India, to pay the amount for cremation. Having been granted the boon that only her husband can see her mangalsutra, Taramati recognizes Harishchandra and makes him aware of the happenings. Dutiful Harishchandra requests Taramati to pay the amount to finish the cremation and declines to accept mangalsutra as amount. Taramati then offers her only possession, a saree – her lone dress, a part of which was used to cover the dead body of her son.
Harishchandra accepts the offering but before he could start the cremation, the lord Vishnu (the supreme God in Hinduism), Indra (the lord of heaven in Hinduism) and several Hindu deities along with the sage Vishwamitra manifests themselves and praises Harishchandra for his perseverance and steadfastness. They bring Harishchandra's son back to life. They also offers the king and his wife, instant places in heaven. Harishchandra refuses it stating that he is still bound to his master, the guard at the cremation ground. The sage Vishwamitra then reveals that the guard is Yama (the god of death in Hinduism) and Yama allows Harishchandra to accept the offer from Vishwamitra.
Being Kshatriya (the ruling and military elite of the Vedic-Hindu social system) Harishchandra still declines the offer saying that he cannot leave behind his subjects and requests heaven for all of them. The gods declines his offer to which Harishchandra suggests to pass on all his good virtues to his people so that they can rightfully accompany him to heaven. Pleased with Harishchandra, gods accepts his offer and offers heavenly abode to the king, the queen and all their subjects.