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Harold Crick is an Internal Revenue Service (IRS) agent living a solitary life of strictly scheduled routine. On the day he is assigned to audit an intentionally tax-delinquent baker named Ana Pascal, Harold begins hearing the voice of a woman narrating his life. When his wristwatch stops working and he resets it using the time from a bystander, the voice narrates that this action will eventually result in Harold's death.

Harold consults a psychiatrist who suggests he see a literary expert if he believes there is a narrator. He visits literature professor Jules Hilbert, who initially dismisses him. However, he recognizes omniscient narrative devices in what Harold claims the voice said, and is intrigued. He tries to help Harold identify the author and determine if his story is a comedy or tragedy.

As Harold audits Ana he develops an attraction to her, but when he obliviously rejects a gift of cookies because it could be considered a bribe, he takes it as a sign he is in a tragedy. Jules tells Harold to spend the day at home doing nothing, and his living room is destroyed by a demolition crew that went to the wrong building. Jules takes such an improbable occurrence as proof that Harold is no longer in control of his own life, and advises he enjoy the time he has left, accepting whatever destiny the narrator has for him.

Harold takes time off work, takes guitar lessons, moves in with his co-worker Dave, and starts dating Ana. Since she loves him, he re-evaluates his story as a comedy. While meeting with Jules, Harold sees a television interview with author Karen Eiffel and recognizes her voice as his narrator's.

Jules, an admirer of Karen's work, says that all of her books are tragedies: the protagonist always dies. Karen has been struggling with writer's block on her next book because she cannot figure out how to kill Harold Crick, but has had a breakthrough and begun writing again.

Harold telephones Karen and stuns her by accurately recounting her book to her. They meet in person and she explains she has outlined the conclusion but not yet typed it in full. Her assistant, Penny, recommends Harold read the outline, but he cannot bring himself to do so, and gives it to Jules. Jules deems it Karen's masterpiece to which Harold's death is integral, and he consoles Harold that death is inevitable, but this death will hold a deeper meaning.