Early chapters relate Philip's experience at the vicarage. His aunt tries to be a mother to Philip, but she is herself childish and unsure of how to behave, whereas his uncle takes a cold disposition towards him. Philip's uncle has an eclectic collection of books, and in reading Philip finds a way to escape his mundane existence and experience fascinating worlds of fiction.
Less than a year later, Philip is sent to a boarding school. His uncle and aunt wish for him to eventually go to Oxford to study to become a clergyman. Philip's shyness and his club foot make it difficult for him to fit in with the boys at the school, and he does not make many friends. Philip goes through an episode of deep religious belief, and believes that through true faith he can petition God to heal his club foot; but when this does not happen, his belief falters. He becomes close friends with one boy; but the friendship breaks up, and he becomes miserable. Philip shows considerable academic talent and is informed by the school's headmaster that he could have earned a scholarship for Oxford, but instead he becomes determined to leave the school and go to Germany. Philip's uncle and the headmaster oppose Philip's desire to go to Germany, but eventually they give in and allow him to go to Heidelberg for a year.
In Heidelberg, Philip lives at a boarding house with other foreigners and studies German, among other subjects. Philip enjoys his stay in Germany. At the boarding house he meets a fellow Englishman, Hayward, who has an interest in literature and who considers himself a poet. Philip also meets an unorthodox American named Weeks, who dislikes Hayward, whom he thinks superficial. Philip is intrigued by his long discourses with Hayward and Weeks and eventually becomes convinced that he need not believe in the Church of England; a radical idea for him as he had been brought up with staunch Christian values.
Philip returns to his uncle's house and meets a middle-aged family friend of his aunt and uncle named Miss Wilkinson, who is very flirtatious toward Philip. He is not particularly attracted to her and is uncomfortable about her age; but he likes the idea of having an affair with someone, so he pursues her. She becomes very attached to Philip and declares her love for him, and he pretends to be passionate about her, but he is relieved when she needs to return to Berlin. Miss Wilkinson writes letters to Philip from Berlin, to which he eventually stops responding.
