Royal Tenenbaum and his wife Etheline had three children and then they separated. All three children are extraordinary --- all geniuses. Virtually all memory of the brilliance of the young Tenenbaums was subsequently erased by two decades of betrayal, failure, and disaster. Most of this was generally considered to be their father's fault. "The Royal Tenenbaums" is the story of the family's sudden, unexpected reunion one recent winter.

Upon his release from a mental hospital following a nervous breakdown, the directionless Anthony joins his friend Dignan, who seems far less sane than the former. Dignan has hatched a harebrained scheme for an as-yet-unspecified crime spree that somehow involves his former boss, the (supposedly) legendary Mr. Henry.