In Goethe's reworking of the story, the aging and dissatisfied intellectual Faust yearns for "more than earthly meat and drink" in his life. Bored and dissappointed, he decides to call on the Devil for further knowledge and magic powers with which to indulge all the pleasure and knowledge of the world. In response, the Devil's representative, Mephistopheles, appears. He makes a bargain with Faust: Mephistopheles will serve Faust with his magic powers for a set number of years, but at the end of the term, the Devil will claim Faust's soul and Faust will be eternally damned. The term usually stipulated in the early tales is 24 years—one year for each of the hours in a day.

During the term of the bargain, Faust makes use of Mephistopheles in various ways. In many versions of the story, particularly Goethe's drama, Mephistopheles helps him to seduce a beautiful and innocent girl, usually named Gretchen, whose life is ultimately destroyed. However, Gretchen's innocence saves her in the end, and she enters Heaven. In Goethe's rendition, Faust is saved by God's grace via his constant striving—in combination with Gretchen's pleadings with God in the form of the Eternal Feminine. However, in the early tales, Faust is irrevocably corrupted and believes his sins cannot be forgiven; when the term ends, the Devil carries him off to Hell.