Mr Murdstone has appointed his sister Jane as housekeeper and David is forbidden to associate with the servants, especially Peggoty. David and Mr Murdstone develop a mutual hatred for each other. When Mr Murdstone beats David, David turns on him, biting his hand. After this he is sent away to Salem House School run by the cruel headmaster Mr Creakle.

After the death of David's mother Mr. Murdstone takes David out of school and puts him to work in his London wine business as a bottlewasher and general labourer. David boards with the Micawbers, a family who live in desperate but genteel poverty, under constant harassment from creditors.

Arriving home from work one evening, David finds that the Micawbers are about to be taken to the debtors' prison. Now homeless, David decides to run away to his only surviving relative, Aunt Betsey, who lives near Dover. She takes him in and roughly sends the Murdstones away when they come looking for David.

Aunt Betsey sends David to public school where during term time he lives with her lawyer Mr Wickfield. The widower and his daughter Agnes welcome David's company.

After meeting his old schoolfriend Steerforth at an inn, David takes him on a visit to Yarmouth to see Peggoty and her husband Barkis and her family.

David has fallen in love with Dora, the young daughter of his employer Mr Spenlow. After capturing her attention at her birthday party, David is hoping that Dora will return his affection.

Ham reveals the news that his bride-to-be, Emily, has run away with Steerforth. Mr Spenlow has discovered David's letters to Dora and has forbidden David to see her anymore.

After the death of Mr Spenlow, Dora and David marry. Traddles enters the Law and begins investigating the affairs of Wickfield and Heep.

After Dora's death, David's life seems empty and meaningless. After a period of unhappy wandering he returns home to the end of an old friendship and the beginning of a new life with Agnes.