Ezra (Sohrab Modi) is a jeweller who has a son called Elijah. He also has a friendly butler/child minder called Emmanuel. In the beginning, Ezra is due to leave. As he does, Elijah becomes upset and stands at the balcony. In the roads of the Jewish area, Brutus (Nazir Hussain), Governor of Rome, is passing, making an announcement. Watching over the balcony, is Elijah. A stone slips from his hand and hits Brutus on the head. Brutus immediately gets Elijah arrested, and as Elijah is a Jew, sentences him to death. Hearing this, Ezra rapidly returns from his trip and arrives at the doorstep of Brutus. He begs Brutus to free Elijah but Brutus feeds Elijah to hungry lions. Ezra sadly returns to his house. In revenge, Emmanuel kidnaps Lydia, motherless daughter of Brutus, and takes her to Ezra. Ezra declines to kill Lydia and adopts the child.
Jalsaghar depicts the end days of a decadent zamindar (landlord) in Bengal, and his efforts to uphold his family prestige even when faced with economic adversity. The landlord, Biswambhar Roy (Chhabi Biswas), is a just but other-worldly man who loves to spend time listening to music and putting up spectacles rather than managing his properties ravaged by floods and the abolition of zamindari system by the Indian government. He is challenged by a commoner who has attained riches through business dealings, in putting up spectacles and organising music fests. This is the tale of a zamindar who has nothing left but respect and sacrifices his family and wealth trying to retain it.
Vijay (Guru Dutt) is an unsuccessful poet whose works are not taken seriously by publishers or his brothers (who sell his poems as waste paper). Unable to bear their taunting that he is a good-for-nothing, he stays away from home and is often out on the streets. He encounters a good-hearted prostitute named Gulabo (Waheeda Rehman), who is enamoured with his poetry and falls in love with him. He also encounters his ex-girlfriend Meena (Mala Sinha) from college and finds out that she has married a big publisher Mr. Ghosh (Rehman) for financial security. Ghosh hires him as a servant to find out more about him and Meena. A dead beggar to whom Vijay gave his coat and whom he tries to save unsuccessfully from the path of a running train is mistaken for Vijay. Gulabo goes to Ghosh and gets his poems published. Ghosh does so feeling he can exploit the poems and make a killing. The poems are very successful. However, Vijay is alive and in the hospital after the train mishap.
The film is set in 1957, the present day at the time of shooting. When construction of an irrigation canal to the village is completed, Radha (Nargis), considered to be the "mother" of the village, is asked to inaugurate the canal. She remembers her past, when she was newly married.