A tumbleweed rolls across a hillside just outside Los Angeles as a mysterious figure known as The Stranger (Sam Elliott) narrates the story of a man named Jeffrey Lebowski, who is better recognized simply as The Dude (Jeff Bridges). According to The Stranger, Dude is one of the laziest men in LA, even likely holding the title for the laziest in the world, yet he is the man for his time and place.
The film is set in 1990, where The Dude, clad in a bathrobe and flip-flops, makes a quick stop at a local Ralph's grocery store to buy a carton of cream, paying with a post-dated check for just 69 cents. Meanwhile, on television, President George Bush Sr. delivers a speech addressing the nation about aggression not standing against Kuwait. Once back in his apartment, The Dude is unexpectedly ambushed by two men who force him into the bathroom and dunk his head in the toilet, mistakenly believing he owes money to Jackie Treehorn, since his wife Bunny (later revealed to be Tara Reid), claimed he could cover her debts. One of the thugs, Woo (Philip Moon), even ruins The Dude's beloved rug by urinating on it, taunting, "Ever thus to deadbeats, Lebowski!" Confused and in disbelief, The Dude manages to convince them they've got the wrong person, but they leave destruction in their wake.
Later, The Dude meets up with his bowling teammates at the alley, where Walter Sobchak (John Goodman), outraged, jumps into a rant about the incident, referencing his time in Vietnam to draw parallels. Theodore Donald 'Donny' Kerabatsos (Steve Buscemi), who often finds himself lost in the conversation, is met with Walter's scorn when he interjects, being told, "You're out of your element." Walter informs Dude that a millionaire with the same name could be the actual target, prompting The Dude to seek out this "Big Lebowski" to see about reimbursement for his ruined rug—"it really tied the room together."
Upon arriving at Lebowski's opulent mansion, The Dude meets Brandt (Philip Seymour Hoffman), who shows him awards reflecting Lebowski's philanthropic efforts. But the elder and wheelchair-bound Big Lebowski (David Huddleston) bluntly tells Dude he won’t be responsible for every rug mishap in town, treating him disdainfully for his slacker persona. Dude leaves in frustration but soon finds himself conversing with Bunny, Lebowski's younger trophy wife who offers him, rather suggestively, fellatio for $1,000.
During a bowling night, Walter entails a heated exchange when he brings his ex-wife's dog to the alley, forcing a confrontation with a player named Smokey ([Jimmie Dale Gilmore]), leading to Walter brandishing a gun as tensions rise. Afterward, at the comfort of home, Dude retreats to his favorite drink—a White Russian—while listening to phone messages that stress the fallout of Walter's actions at the alley.
Things worsen when The Dude learns Bunny has been kidnapped and Big Lebowski wants him to act as the intermediary for a ransom drop of $1 million, likely involving the same thugs who destroyed his rug. Involved in the absurdity of it all, he reluctantly agrees to deliver the ransom, believing that Bunny might have set this whole scheme in motion herself.
As the story unfolds, The Dude, along with Walter and Donny, navigates a series of wild misadventures, from confrontations with nihilists to comedic yet chaotic bowling alley brawls, ultimately leading them to the realization that they may be in deeper waters than they ever anticipated. Amidst a backdrop of incompetence and absurdity, The Dude constantly seeks tranquility, often remarking on life’s ups and downs.
In a climactic encounter, tragically resulting in Donny's untimely demise, the story captures themes of camaraderie, the triviality of material possessions, and the quest for leisure amidst chaos, as The Dude, now forever changed, comes to accept the rhythm of life. As he meets Maude (Julianne Moore), an artist introduced late in the narrative, they share moments of warmth amidst the madness, and in the final scenes, The Dude relaxingly embraces the phrase, "The Dude abides," suggesting a laid-back acceptance of life's misadventures as he orders another drink, reaffirming the peace he seeks.
Through whimsical storytelling and a range of eccentric characters, this colorful tale brings to life the trials and trivialities of an ordinary man navigating an extraordinary circumstances while simply hoping to find his beloved rug again.
