The scene opens on the town of Ayemenem in the southern Indian province of Kerala. The setting is almost unbearably abundant and full of life. We encounter Rahel, who returns home to Ayemenem to see her twin brother, Estha. Still living in the same house is her grandaunt, Baby Kochamma. Rahel and Estha have a peculiar relationship. As children they considered themselves to be one person. Roy tells us that "they were a rare breed of Siamese twins, physically separate, but with joint identities." Rahel used to share experiences, dreams, and memories with Estha. But as 31-year-old adults, the twins have become individual emotionally as well as physically. As young children they lived in the famous tea province of Assam. Later on, their parents divorced and Ammu returned to live in Ayemenem.
The narrative turns to the funeral of Sophie Mol, Rahel's and Estha's cousin. Sophie drowned at the age of nine while visiting Ayemenem from England. Rahel and Estha were seven years old at the time. Among those in attendance were Sophie's parents, Margaret Kochamma and Chacko, Baby Kochamma, and Rahel's and Estha's blind grandmother, Mamachi. Ammu, Rahel, and Estha had to stand separately from the rest of the family, and no one acknowledged their presence. Rahel was unusually aware of the "small things" going on during the funeral; she believed that that Sophie Mol was awake during the funeral and showed Rahel two things. The first was the unusual paintwork on the ceiling of the cathedral; it showed a blue sky complete with clouds and tiny airplanes. Rahel imagined the artist who painted it falling from his perch and cracking his head open, "dark blood spilling from his skull like a secret." The second thing was a baby bat that crawled up Baby Kochamma's sari and may have bit her. Rahel saw Sophie Mol do a "secret cartwheel in her coffin" when this happened. Rahel also heard Sophie's screams when they buried her-alive, according to Rahel.