The story begins is a carnival in a quaint New England seaport. Billy Bigelow, a handsome, young "barker" with the traveling show, meets Julie Jordan and Carrie Pipperidge, two local girls who worked at Bascombe's knitting mill. Robust, romantic Billy is used to being admired by the girls of the town he visits, but Julie is different. Because of his attention to her, he gets into difficulty with Mrs. Mullin, the carousel owner, and loses his job. When Billy and Julie get married, they are both without work. One fine June day, Billy's friend Jigger suggests a way to get some east money: rob wealthy mill owner Bascombe while everyone is at the picinc. Desperate, Billy agrees, for Julie has told him that they are to have a baby.

Bascombe, however, successfully fights off his attackers, and to avoid capture and humiliation before Julie, Billy kills himself. In heaven, Billy is told he has one chance to return to earth. By now, his daughter Louise is in her teens. Because of the disgrace in which her father died, she is avoided by the "respectable" townspeople. At her school graduation, however, Billy manages to communicate with her and his wife. He inspires them with the knowledge that he loved them-and still does-and that they must face the future bravely and with hope. His devotion is so strongly felt that it pervades the entire gathering and transforms both his wife and daughter into happy, hopeful people. He has saved them - and himself - through the priceless gift of his own love.