The year is 1936. Barely back from a treasure hunt in South America, renowned archaeologist and expert in the occult, Dr. Indiana Jones, is hired by the US Army Intelligence to find the biblical Ark of the Covenant - resting place of the Ten Commandments - whose supernatural powers, legend says, can wipe out entire armies. Unfortunately, also Hitler has sent his Nazi soldiers after the long lost Ark.

Indiana Jones starts his quest in Patan, Nepal, where he reunites with his old love, the beautiful Marion Ravenwood. Marion owns a precious medallion that will help Indy find the Ark of the Covenant. But Hitler's henchmen are also after the medallion. Indy and Marion flee the Nazis in Nepal and journey to Egypt. Arrived in Cairo they get the help of friend Sallah who is also one of the digger's at the Nazis their Tanis digging operation.

Indy hears from Sallah that his nemesis, the French grave robber Belloq, has been hired by the Nazis to lead their search for the Ark. Indy infiltrates their massive dig site in a race against time to discover the Well of the Souls, where the Ark has lain undisturbed for centuries, before Belloq does.

Once Indy and Sallah have retrieved the Ark. It is viciously snatched from them by the Nazis. But Indy and his friends fight back and manage to retrieve the Ark after an exciting truck chase. But not for long.
Belloq and his Nazis soon retrieve the ark and take it to a small island in the Mediterranean Sea. There Belloq plans a secret Jewish ritual to learn the contents of the Ark. Something his Nazi friends are not keen on.

Indy and Marion are forced to take part in the ceremony. Lashed to a stake, Indy begs Marion not to look as the Ark emits a violent, mysterious beam of light and ghostly figures...