The narrative begins with the curious death of Professor George Gammell Angell, whose papers reveal a chilling obsession with an unknown cult. Among his belongings is a bas-relief depicting a monstrous, tentacled creature, created by a young sculptor named Wilcox during a series of feverish, architecture-defying dreams. The professor's notes connect this artwork to global outbreaks of madness and an ancient Louisiana voodoo raid led by Inspector Legrasse, where police dismantled a deviant sect worshipping a creature known as Cthulhu.
As the narrator delves deeper, he discovers a parallel account in an old Australian newspaper. A Norwegian sailor named Gustaf Johansen recounts a harrowing voyage that intersected with a hidden island. There, Johansen and his crew inadvertently raised the sunken, non-Euclidean stone city of R'lyeh and unleashed the cosmic entity Cthulhu from his eons-long sleep.
Though Johansen managed to ram the colossal monster and escape back to sea, the psychological toll proved fatal to those involved. Piecing together the notes, the newspaper clipping, and Johansen's posthumous manuscript, the narrator realizes the sheer scale of the threat. The ancient entities are real, their secretive worshipers still roam the earth, and humanity remains entirely oblivious to the abyssal horrors waiting in the dark.