The story begins with a Parsi magician living in solitude on an island near the Red Sea. Equipped only with a "sun hat," a "knife," and a "cooking stove," he prepares a "splendid cake" made of flour, currants, plums, and sugar. The peace of the island is interrupted by a rhinoceros, described as a "very proud beast" who was also "very rude." At this time, the rhinoceros possessed a horn on his nose, "piggy eyes," and a "skin coat" that fit tightly against his body, entirely free of any wrinkles.
Driven by greed and the delicious scent of the pastry, the rhinoceros approaches the Parsi’s camp. When the Parsi is about to enjoy his meal, the rhinoceros greedily grabs the cake. In the ensuing chaos, the Parsi is forced to scramble up a "palm tree" to avoid being trampled, while his "precious stove" is knocked over. The rhinoceros spears the cake with his horn and runs off, "gobbling the cake" while mocking the hungry Parsi. Left alone, the Parsi vows vengeance, chanting a mantra: "Them that takes the cakes which the Parsi man bakes makes dreadful mistakes."
A few weeks later, a "terrible heat wave" forces the inhabitants of the island to remove their clothing. The rhinoceros, seeking relief, removes his "very tight skin" by unbuttoning the "three buttons" that held it together. He folds the skin neatly and waddles into the water to blow bubbles, showing no remorse for his past actions. Seizing this opportunity, the Parsi returns to his camp, gathers leftover "crumbs and currants" from his hat, and creeps toward the rhinoceros’s discarded skin. He proceeds to "scrub and rub" the inner lining of the skin with the stale, "tickly cake crumbs" and "burnt currants."
Once the rhinoceros returns from the water and buttons his skin back on, the consequences of the Parsi’s trick become immediately apparent. The skin begins to "itch," "tickle," and "crawl." The rhinoceros attempts every possible remedy: he scratches, lies down on the sand to roll, and eventually runs to a palm tree to rub his body against it with immense force.
This desperate behavior leads to two permanent changes in the rhinoceros. First, he rubs his three buttons "right off," rendering his skin forever loose. Second, the sheer intensity of his rubbing causes his skin to stretch into "great big folds" on his shoulders, stomach, and legs. Despite his efforts, the cake crumbs remain, causing him constant irritation. The narrative concludes that this perpetual state of discomfort is the true reason why the rhinoceros possesses such a "very bad temper" and the characteristic, deep wrinkles that define his appearance to this day.