Elliot Taylor gazed at the picture one Halloween. Two years before, he had met a curious and friendly alien stranded on Earth. He named him E.T. (like extra-terrestrial, you know?) and helped him make a communication device or phone, for messaging his people to come(with brother Michael and sister Gertie helping, of course. They keep E.T. from their mother). At school the next day, Elliott begins to experience a psychic connection with the alien. Exhibiting signs of intoxication due to the alien's own intoxication from drinking beer, Elliott begins freeing all the frogs from a dissection class. As E.T. watches John Wayne kiss Maureen O Hara in The Quiet Man, Elliott's psychic link causes him to kiss a girl he likes in the same manner.
Later that day, E.T. learns to speak and informs them of his plan to call his starts to notice that E.T's health is declining and that Elliott is referring to himself as "we". On Halloween, Michael and Elliott dress E.T. as a ghost so they can sneak him out of the house. Elliott and E.T. ride a bicycle to the forest, where E.T. makes a successful call home. The next morning, Elliott wakes up to find E.T. gone, and returns home to his distressed family. Michael finds E.T. dying in the forest, and takes him to Elliott, who is also dying. Mary (the mom)becomes frightened when she discovers her son's illness and the dying alien, before government agents invade the house. Scientists set up a medical facility in the house, quarantining Elliott and E.T.

Their link disappears, and E.T. then appears to die while Elliott recovers. A grief-stricken Elliott is left alone, as the clay planets E.T. used to show how his planets orbited flew up and started alone with the motionless alien when he notices a dead flower, the plant E.T. had previously revived, coming back to life. E.T. reanimates and reveals that his people are returning. Elliott and Michael steal a van that E.T. had been loaded into and a chase ensues, with Michael's friends joining them as they attempt to evade the authorities by bicycle. Suddenly facing a dead end, they escape as E.T. uses telekinesis to lift them into the air and toward the forest. Standing near the spaceship, E.T.'s heart glows as he prepares to return home. Mary, Gertie, and "Keys", a government agent, show up. E.T. says goodbye to Michael and Gertie, and before entering the spaceship, tells Elliott "I'll be right here", pointing his glowing finger to Elliott's heart. E.T. then picks up the flower pot Gertie gave him, walks into the spaceship, and takes off, leaving a rainbow in the sky.

Elliot wished E.T. would come back. Suddenly, the dead flowers on his window burst into full spinning. He s come back, Elliot thought as he raced spaceship flew down gracefully and opened the hatch. And there he was. Greetings, gentle Earthling! E.T. glad to be back! Elliot ran to the alien to embrace him. E.T. heard call, he explained. Remember, they communicate telepathically. Just in time for the Fourth of July! exclaimed Elliot. The extra-terrestrial looked confused. "Ju-ly," he replied slowly. Elliot tried his best to explain. "It's when America celebrates its freedom." How curious could an alien get? "A-mer-i-ca." E.T. sounded out the strange new word. Elliot didn't answer. He helped him in the house and ran to Michael's room. "Mike! Mike!" he shouted. "Wake up!" Michael growled, "Is it more important than my sleep?" "YES! E.T.'S BACK!" "OH!" Michael jumped up. "That IS important!" Gertie already woke up from the noise and ran to E.T. Mary came closely behind. "E.T., you are back"! exclaimed Mary. "Why don't we get you to bed?" E.T. nodded and went to Elliot's room and laid on Elliot's bed. Elliot walked in. Oh well. He could sleep in his armchair.

E.T. woke up early to something. Sounds. Two first: screaming. But what was screaming?Then there was the second was a wind up toy walking across the floor. The pling sound of it crashing together tiny cymbals reached his ears. (yes ears. its just hard to see them) He waddled after it into the kitchen. There they were. The most greatest thing in the world. Reese's Pieces. He took them and put one in his mouth. How did they make these? E.T. waddled back and noticed Elliot on the had a small blanket over him. He didn't wake him up. He just peered in Michael's room. Then Gertie's. But something was wrong. Gertie wasn't in bed. E.T. wondered if she was hiding. Was it a game? Hide and seek, was it called? E.T. realized that it wasn't a game. He ran fast into Elliot s room, using his arms to balance himself. He had small legs. "Elli-ot." Elliot made a groaning sound and rolled over. "Elliot", E.T. avowed firmly. Elliot opened his eyes. "What?" he denigrated,somewhat indecorously. "Gertie goneeee." Elliot didn't need another word. He sprang up and flew on Michael. "MIKE MIKE MIKE GERTIE IS GONEANDIDON'TKNOWWHERESHEISAND-" "Cool it! You're going to fast!You say Gertie's gone? LET'S GO!"

E.T. lead the way, out the door and south of the house. A man sat in their path, starving. E.T. used his magic to transport food into them. "You ok now." Not wanting to be distracted, the trio went on. A woman upset of her husband's death stopped them. So E.T. used healing power to make her feel better. Distraught, they hurried so Gertie would be rescued sooner. But, another obstacle awaited them. A terribly sick man with pneumonia was about to die. E.T. once again used his healing power, and went on. Finally, they appeared at a house. E.T. knew it was the one. They burst inside to find Gertie tied to a chair with a man over her. Casting his power, E.T. changed the man's heart, prompting him to release her. Once they were home, Mary embraced all of them and E.T. got Reeses Pieces for saving Gertie. At dinner, E.T. revealed his companions were coming soon. They did everything they could to make his last days of visit perfect.

3 days later, the spaceship was expected to land in the bald spot of the forest. As it landed, Mary snapped a photo, and E.T. passed out (he's quick to react to light). The spaceship did land, and they all embraced E.T. as he approached Elliot. "Elliot beeeee gooood. I'll be right here. Just a phone call away." Elliot tearfully hugged the extra terrestrial one last time. E.T. waddled into the spaceship, watching them as the hatch closed. The engines roared to life as the spaceship lifted up. Then it zoomed away, leaving a trail of rainbow vapor in its path, showing proof that the bond and friendship of Elliot Taylor and the extra terrestrial was bigger than the cosmos within the sky and all mankind.