As introduced and then narrated by an older golfer, Hardy Greaves (JACK LEMMON), the story revolves around Rannulph Junuh (MATT DAMON), the best amateur golfer in the Southeast during the 1910s. Known for his near perfect game, Junuh also won the heart of Adele Invergordon (CHARLIZE THERON), the daughter of the richest man in Savannah, Georgia.
Unfortunately, WWI came along and after enlisting and suffering the horrors of war, Junuh returned a broken man, hoping to forget and be forgotten. As the years went by, Adele got on with her life, but when the Great Depression hits and her distraught father commits suicide over the failure of his newly opened, oceanfront golf resort, the tenacious young woman must figure out what to do with the debt he also left her.
Realizing she has to draw attention to the resort, she decides to sell everything so that she can put together a ten thousand dollar exhibition match featuring golf's two best players, Walter Hagen (BRUCE McGILL) and Bobby Jones (JOEL GRETSCH). Although she convinces the two of them to appear, the Savannah locals won't give their approval for her plan unless they can get a local player to participate.
When they can't think of anyone, ten-year-old Hardy Greaves (J. MICHAEL MONCRIEF), a golf fanatic, suggests that Junuh could give them a run for the money, despite the fact that he only knows of the former golfer's game through his father's stories. Rushing off to tell Junuh of the good news, Hardy finds a disillusioned young man who's more interested in drinking and playing poker than returning to the game.
Nevertheless, and due to some prodding from Hardy and Adele - with whom he never resolved the status of their former relationship - Junuh decides one night to see if he's really lost his swing. While doing so, he meets Bagger Vance (WILL SMITH), an amiable but obviously poor black man who literally walks out of the darkness and into Junuh's life.
Filled with down-home, sage advice and philosophical sayings, Bagger offers to be Junuh's caddie and subtly convinces the former golfer that he can not only return to the game, but that he can also compete against Hagen and Jones. As the two-day, 72-hole exhibition begins and sportswriters such as Grantland Rice (LANE SMITH) cover the event, Junuh - with the help of Bagger - tries to get both his game and his life back in order.