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Wizards Albus Dumbledore and Minerva McGonagall meet at Number Four, Privet Drive, Little Whinging, in suburban Surrey following recent events in the wizarding world. Lord Voldemort, the most powerful and fearsome Dark wizard ever known, has been defeated. Unfortunately, Lily and James Potter were his two final victims. However, their infant son, Harry, somehow survived Voldemort's killing curse and a lightning-shaped scar on his forehead is the only apparent side-effect. Harry instantly becomes a legend in the magical world, known as "the Boy who Lived," but Dumbledore wants him to be raised away from any undesirable fame and attention.

Rubeus Hagrid, gamekeeper of Hogwarts School of Witchcraft and Wizardry meets Dumbledore at Privet Drive with baby Harry, who is then left in the reluctant care of his only living family, his mother's Muggle (non-magical) sister Petunia Dursley, her husband Vernon and their spoiled son Dudley. The Dursleys disdain the wizard world and conceal knowledge of Harry's magical abilities from him, claiming his parents were killed in a car crash. The Dursleys neglect and mistreat Harry, who is forced to sleep in a cupboard under the stairs.

Shortly before Harry's eleventh birthday, owls begin delivering letters to the Dursleys house. Denying Harry access to them but unable to stop the deliveries, his aunt and uncle hide on a small island with their son and nephew. But Hagrid finds them and hand delivers a letter to Harry inviting him to study magic at Hogwarts School of Witchcraft and Wizardry. He tells Harry about his parents and introduces him to the magical world. At The Leaky Cauldron pub they meet the new Hogwarts Defence Against the Dark Arts teacher (Prof. Quirrell). From there, they enter Diagon Alley, the wizard business district in London where Harry purchases school supplies. Hagrid tells Harry that Lord Voldemort murdered his parents. Although Voldemort is gone, his lingering evil legacy continues to create such intense fear that few dare speak his name aloud. When Harry buys a wand from Mr. Olivander, he tells Harry it is the "brother" to Voldemort's wand—their wood cores contain a tail feather from the same phoenix. Harry also meets Draco Malfoy, a young wizard from a wealthy family who is also starting Hogwarts. But Malfoy's elitist manner and insulting remarks about Hagrid offend Harry.

Wikibooks Muggles' Guide to Harry Potter has a page on the topic of
Philosopher's StoneSoon, Harry leaves for school from Platform 9¾ at King's Cross railway station, London. There he meets Ron Weasley, a boy from a poor but loving wizard family who is impressed by Harry's scar but unintimidated by his reputation. Harry also meets Hermione Granger, a witch who also grew up in a muggle family and is a bit of an annoying know-it-all. Upon arriving at Hogwarts, all new students are sorted into one of the four school houses by the the Sorting Hat, once the property of Godric Gryffindor, a school founder. Each house has specific characteristics: Slytherin is filled with ambitious, cunning people who may use any means to get what they want; Ravenclaw is home to those with sharp minds that value intelligence and wit; Gryffindor houses those who are daring and brave; and Hufflepuff is characterised by fairness, honesty and hard work. While Harry is being sorted, the sorting hat declares Harry difficult to place and considers placing him in Slytherin. Harry wishes hard for Gryffindor and, hearing his thoughts, the hat places him there, along with Ron and Hermione. The arrogant Draco Malfoy, who by now is openly contemptuous of Harry and his friends, is sorted into Slytherin.

Harry Potter thinks he is an ordinary boy — until he is rescued by a beetle eyed giant of a man, enrols at Hogwarts School of Witchcraft and Wizardry, learns to play Quidditch and does battle in a deadly duel. All because Harry Potter is a wizard! Follow the adventures of Harry Potter as he discovers the magical, the dangerous, the unpredictable world of Hogwarts School of Witchcraft and Wizardry.

In Britain the book is called Harry Potter and the Philosopher’s Stone but when the book was published in the U.S. it was called Harry Potter and the Sorcerer's Stone (although the book itself is the same) This is why the film of the book is referred to by two different names.