Lily Bart is an impoverished socialite who is accustomed to a life of comfort and luxury. Living with her wealthy aunt, Julia Peniston, and her younger cousin, Grace Stepney, Lily receives a small allowance that barely sustains her. Despite her financial struggles, she dreams of a life filled with love and security.
Lily admires Lawrence Selden, a lawyer whose financial status makes him an unsuitable match in her eyes. Her options are limited to Simon Rosedale, a rising financier, and the wealthy Percy Gryce. Encouraged by her friend Judy Trenor, Lily is urged to pursue Gryce, but her heart remains with Selden. During a weekend in the countryside, they share a romantic moment, but Lily’s indecision leads to Gryce leaving abruptly.
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Feeling anxious about her future, Lily confides in Gus Trenor, Judy’s husband, who offers to help her earn money through investments. This encounter leads Lily to purchase scandalous letters written by Bertha Dorset, which reveal that Selden was once her lover. Although hurt by this revelation, Lily keeps the letters a secret, fearing the consequences of their exposure.
At a wedding, Lily receives a $5,000 check from Gus Trenor, who claims to have reinvested another $4,000 for her. Later, at the opera, she is seen sitting with Trenor and Rosedale, which raises eyebrows among her social circle. Trenor manipulates Lily into leaving the opera with him, where he attempts to kiss her, arguing that she cannot accept his financial help while denying him her affections.
Upon returning home, Lily finds herself in a precarious situation. Julia refuses to lend her the money needed to repay Trenor, leaving Lily feeling trapped. She confides in Grace, contemplating whether to seek solace in Selden’s understanding, but Grace, who secretly loves Selden, advises against it. Despite her mistakes, Lily hopes that Selden’s love will prevail.
While waiting for Selden to reach out, Rosedale proposes to Lily, offering her the financial freedom she desperately needs. However, she declines his proposal, choosing instead to accept an invitation from Bertha Dorset to join them on a European cruise. This decision is driven by her desire to escape the mounting debts and gossip surrounding her in New York.
In Monte Carlo, Mrs. Carry Fisher meets with Selden, who is concerned about Lily’s well-being. Meanwhile, Lily finds herself entangled in the Dorsets’ complicated relationship. As she navigates the yacht’s social dynamics, she becomes increasingly aware of Bertha’s indiscretions, leading to a confrontation that turns the tables on her.
Back in New York, the Dorsets remain in marital discord, and Lily faces the death of her aunt Julia. With only a fraction of Julia’s fortune left to her, Lily finds herself homeless and adrift. Carry Fisher offers her a place to stay, believing that Lily’s prospects for marriage lie with either George Dorset or Simon Rosedale.
As George seeks the truth about his wife’s infidelities, Lily remains silent, fearing the repercussions of revealing what she knows. In her desperation, she turns to Rosedale, who suggests using Bertha’s letters to regain her social standing. However, Lily refuses his offer of marriage, determined to maintain her dignity.
To make ends meet, Lily takes a job as a secretary for the social-climbing Mrs. Hatch. Despite Selden’s warnings that this job will hurt her reputation, Lily feels she has no choice. Their relationship deteriorates, leading to a bitter argument. As her situation worsens, Lily begins to rely on laudanum for solace, which only exacerbates her problems.
After being fired from her job due to her declining work quality, Lily seeks help from Grace but is met with rejection. In a moment of desperation, she almost confronts Bertha with the letters but ultimately decides to destroy them, believing she has lost Selden’s love forever.
Upon receiving her inheritance, Lily resolves to pay off her debts, but the weight of her circumstances becomes too much to bear. In a tragic turn of events, she takes a fatal dose of laudanum. When Selden discovers her intentions, he rushes to her side, declaring his love as she lies on her deathbed, holding her hand in a final act of devotion.