In the Jewish ghetto in 16th Century Prague, the community leader and astrologer Rabbi Low (Albert Steinruck) foresees doom for his people written in the stars. A short time later the Emperor Luhois (Otto Gebuhr) issues an expulsion order to the people of the ghetto and they are to leave the city. In an attempt to save his people, Low creates a forbidding clay golem (Paul Wegener) that he brings to life with the assistance of a demon spirit and an amulet placed in the centre of the creatures chest. Subsequently the Golem saves the Emperor's life and the order is rescinded.

Initially the Golem does nothing but good, but changes after Low's assistant Famulus (Ernst Deutsch) uses the creature to ward off Count Florian (Lothar Muthel), who is competing with him for the affections of the Rabbi's daughter Miriam (Lyda Salmonova). Famulus tries to remove the amulet and to return the Golem to rest, but fails as the enraged creature embarks on a trail of destruction, burning Low's house and making off with Miriam; the whole community is threatened...