In a small village of about 300 residents, the locals are in an excited yet nervous mood on June 27. Children gather stones, as the adult townsfolk assemble for their annual event, which in the local tradition is apparently practiced to ensure a good harvest (Old Man Warner quotes an old proverb: "Lottery in June, corn be heavy soon"). However, some other villages have already discontinued the lottery, and rumors are spreading that a village farther north is considering doing likewise.

The lottery preparations start the night before, with coal merchant Mr. Summers and postmaster Mr. Graves drawing up a list of all the extended families in town and preparing a set of paper slips, one per family; all are blank, except for one later revealed to be marked with a black dot. The slips are folded and placed in a black wooden box, which in turn is stored in a safe at Mr. Summers' office until the lottery is scheduled to begin.

In the morning of the lottery, the townspeople gather shortly before 10 a.m. in order to have everything done in time for lunch. First, the heads of the extended families each draw one slip from the box, but wait to unfold them until all the slips have been drawn. Bill Hutchinson gets the marked slip, meaning that his family has been chosen. His wife Tessie protests that Mr. Summers rushed him through the drawing, but the other townspeople dismiss her complaint. Since the Hutchinson family consists of only one household, a second drawing to choose one household within the family is skipped.

For the final drawing, one slip is placed in the box for each member of the household: Bill, Tessie, and their three children. Each of the five draws a slip, and Tessie gets the marked one. The townspeople pick up the gathered stones and begin throwing them at her as she screams about the injustice of the lottery.