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Santiago continually has a dream, and decides it must be a prophecy, so he consults a professional. The fortune teller in the next town tells him he'll discover treasure at the Egyptian Pyramids.

He meets an elderly king, Melchizedek, who tells him to sell his sheep and use the money for his travels. you have always wanted to accomplish.
Unfortunately, when he follows the king's advice, he is soon robbed of his money and has to work for a merchant to make enough money to continue his journey. He believes his 'Personal Legend' is to travel to the pyramids.

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During his journey, he makes a companion, an Englishman searching for an alchemist. In the desert they rest at an oasis and Santiago falls in love with an Arabian girl. When he proposes to her, she agrees, but only when he has finished his journey.
He's upset, but eventually comes to realize that true love can't be stopped, and neither can his Personal Legend, because then neither can be worth it.

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Santiago meets an alchemist later on. They journey through land where tribes are at war, and during an unfortunate encounter with said tribes, he is required to prove he is one with "the soul of the world" by summoning a sandstorm. The story uses plenty of symbolism and personification, but he does manage it, and eventually gets to the pyramids. He's robbed- again- but the leader of the thieves reveals that he had a dream-like prophesy, too, that he hadn't followed foolishly, which said the treasure Santiago had been after the entire time was in the ruined church he'd originally started his journey from.

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The main character of the Alchemist is Santiago, an Andalusian shepherd boy.

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The old king introduces a concept to Santiago of a 'personal legend,' someone's legacy. He explains it as "what you have always wanted to accomplish. Everyone, when they are young, knows what their Personal Legend is."