Two sisters, Grace and Marion, live happily in an English village with their two servants, Clemency Newcome and Ben Britain, and their good-natured widower father Dr Jeddler. Dr Jeddler is a man whose philosophy is to treat life as a farce. Marion, the younger sister, is betrothed to Alfred Heathfield, Jeddler's ward who is leaving the village to complete his studies. He entrusts Marion to Grace's care and makes a promise to return to win Marion's hand.
Michael Warden, a libertine who is about to leave the country, is thought by the barristers Snitchey and Craggs to be about to seduce the younger sister into an elopement. Clemency spies Marion one night in her clandestine rendezvous with Warden. On the day that Alfred is to return, however, it is discovered that Marion has run off. Her supposed elopement causes much grief to both her father and her sister.
Six years pass. Clemency is now married to Britain and the two have set up a tavern in the village. After nursing heartbreak, Alfred marries Grace instead of Marion and she bears him a daughter, also called Marion. On the birthday of Marion, Grace confides to Alfred that Marion has made a promise to explain her so-called "elopement" in person. Marion indeed appears that evening by sunset and explains her disappearance to the parties involved. It turns out that Marion has not "eloped" but has instead been living at her aunt Martha's place so as to allow Alfred to fall in love with Grace. Tears are shed and happiness and forgiveness reign as the missing sister is reunited with the rest. Warden also returns, and, forgiven by Dr Jeddler, marries Marion.
Redlaw is a teacher of chemistry who often broods over wrongs done him and grief from his past.
He is haunted by a spirit, who is not so much a ghost as Redlaw's phantom twin and is "an awful likeness of himself...with his features, and his bright eyes, and his grizzled hair, and dressed in the gloomy shadow of his dress..." This spectre appears and proposes to Redlaw that he can allow him to "forget the sorrow, wrong, and trouble you have known...to cancel their remembrance..." Redlaw is hesitant at first, but finally agrees.
As a consequence of the ghost's intervention, Redlaw is without memories of the painful incidents from his past. He experiences a universal anger that he cannot explain. His bitterness spreads to the Swidgers, the Tetterbys and his student. All become as wrathful as Redlaw himself. The only one who is able to avoid the bitterness is Milly.
With this realization, the novel concludes with everyone back to normal and Redlaw, like Ebenezer Scrooge, a changed, more loving man. Now a whole person, Redlaw learns to be humble at Christmas.
