The word Siddhartha is made up of two words in Sanskrit language, siddha (achieved) + artha (what was searched for), which together means "he who has found meaning (of existence)" or "he who has attained his goals".[2] In fact, the Buddha's own name, before his renunciation, was Siddhartha Gautama, Prince of Kapilavastu. In this book, the Buddha is referred to as "Gotama".

The story takes place in the Nepalese district of Kapilavastu. Siddhartha decides to leave behind his home in the hope of gaining spiritual illumination by becoming an ascetic wandering beggar of the Shramanas. Joined by his best friend, Govinda, Siddhartha fasts, becomes homeless, renounces all personal possessions, and intensely meditates, eventually seeking and personally speaking with Gautama, the famous Buddha, or Enlightened One. Afterward, both Siddhartha and Govinda acknowledge the elegance of the Buddha's teachings. Although Govinda hastily joins the Buddha's order, Siddhartha does not follow, claiming that the Buddha's philosophy, though supremely wise, does not account for the necessarily distinct experiences of each person. He argues that the individual seeks an absolutely unique, personal meaning that cannot be presented to him by a teacher.

He thus resolves to carry on his quest alone.