An aging couple, Ethel and Norman Thayer, continue the long tradition of spending each summer at their cottage on a lake called Golden Pond, in the far reaches of northern New England. When they first arrive, Ethel notices the loons calling on the lake "welcoming them home". As they resettle into their summer home, Norman's memory problems arise when he is unable to recognize several family photographs, which he copes with by frequently talking about death and growing old. They are visited by their only child, a daughter, Chelsea, who is somewhat estranged from her curmudgeon of a father. She introduces her parents to her fiancé Bill and his thirteen-year-old son Billy. Norman tries to play mind games with Bill, an apparent pastime of his, but Bill won't hear of it, saying he can only take so much. In another conversation, Chelsea discusses with Ethel her frustration over her relationship with her overbearing father, feeling that even though she lives thousands of miles away in Los Angeles, she still feels like she's answering to him. Before they depart for a European vacation, Chelsea and Bill ask the Thayers to permit Billy to stay with them while they have some time to themselves. Norman, seeming more senile and cynical than usual due to his 80th birthday and heart palpitations, agrees to Billy's staying. Ethel tells him that he's the sweetest man in the world, but she is the only one who knows it.