Crisóstomo Ibarra, the 

mestizo son of the recently deceased Don Rafael Ibarra, is returning to San

Diego town in Laguna after seven years of study in Europe. Kapitán Tiago, a family friend, invites
him to a reunion party in Manila. At the party Crisóstomo meets Padre Dámaso, who was San
Diego's parish priest when Crisóstomo left for Europe. Dámaso treats Crisóstomo with hostility,
surprising the young man who regarded the priest as a friend of his father. Later as Crisóstomo was
walking back to his hotel, Lieutenant Guevarra, another friend of his father, informs him that Don
Rafael may have been killed for political reasons and Dámaso may have been involved. Guevarra
warns him to be careful.
The following day, Crisóstomo returns to Tiago's home to meet with his childhood sweetheart,
Tiago's daughter María Clara. As the two flirt and reminisce, María reads back to him his farewell
letter where he quoted a discussion he had with his father regarding the state of the country. Deeply
moved, Ibarra excuses himself saying that he had to prepare for his trip to San Diego.
Arriving at the town, Crisóstomo goes to the cemetery to visit his father's grave. The undertaker tells
him that the parish priest had ordered Rafael's remains be transferred to the Chinese cemetery, but
that he threw the corpse into the lake instead. As Padre Bernardo Salví, the new parish priest, walks
by, an enraged Crisóstomo pushes him to the ground, demanding an explanation. Salví fearfully
says that the transfer was ordered by Padre Dámaso, not him.
Crisóstomo decides to forgive and commits to improvements in his town. He plans to build a private
school, believing that his paisanos would benefit from a more modern education than what is offered
in the government schools, which were under the influence of the friars. Enjoying widespread
support from the locals and Spanish authorities, Crisóstomo's project advances quickly. He receives
counsel from Don Anastacio, a local philosopher, and recruits a progressive schoolmaster.
Construction was set to begin shortly with the cornerstone to be laid during San Diego's town fiesta.
One day, Crisóstomo, María and their friends go on a picnic along the shores of the Laguna de Baý.
They discover that a crocodile had been lurking in the Ibarras' fish pens. Elías, the boatman, jumps
into the water with a knife drawn. Sensing Elías is in danger, Crisóstomo jumps in and the two
subdue the animal together. Elías proclaims himself indebted to Crisóstomo.