The House of Mirth tells the story of Lily Bart, a woman who is torn between her desire for luxurious living and a relationship based on mutual respect and love. She sabotages all her possible opportunities for a wealthy marriage, loses the esteem of her social circle, and dies young, poor, and alone.
Lily is initially of good social standing and rejects several offers of advantageous marriage. The book begins with Lily's 'scandalous' visit at a single man's apartment (Lawrence Selden). They seem to have a feeling for each other, but, unfortunately, Lawrence is not in possession of a big fortune, which turns Lily rather towards Percy Gryce, a young and timid millionaire. When everyone is convinced that Percy will propose to Lily on the next occasion, she suddenly changes her mind and steps back. This is clearly caused by an unexpected visit by Lawrence Selden, who is now convinced of his love for her, but does not want to risk marriage. Gryce soon marries another girl from the same circle.
Lily's social standing erodes when her friend Judy Trenor's husband Gus gives Lily a large sum of money. Lily innocently accepts the money, believing that it is the return on investments he supposedly made for her. The rumors of this transaction, and of her mysterious visit to Gus in his city residence, crack her social standing further. One day Lily receives a note from Selden. She is sure he is going to propose and accepts the meeting the next day. Selden, frightened by this sudden change of her heart (earlier she virtually escaped when he tried to kiss her), flees to Havana, and then Europe, leaving no notice.
To escape the rumors and gossip caused by her deal with Trenor, and also disappointed with Selden, Lily accepts an invitation from Bertha Dorset to join her and her husband, George, on a cruise of Europe aboard their yacht the Sabrina. Unfortunately, while aboard the yacht, Bertha accuses Lily of adultery with George in order to shift societal attention from Bertha's own infidelity with poet Ned Silverton. The ensuing scandal ruins Lily, leading her friends to abandon her and her Aunt Peniston to disinherit her.
Lily tries to fight her way back to the high society, befriending Mr and Mrs Gormer, but Bertha Dorset gradually introduces them to Lily's 'scandals' and undermines her new position. Now Lily is left but with two of her friends: Gerty Farish (Seldon's cousin) and Carry Fisher, who both are trying to help her cope with her changing situation. Their constant advice is that Lily marry, and quickly.
Lily descends the social strata, working as a personal secretary for a disreputable woman, Mrs. Hatch, but resigns after Lawrence Selden comes to rescue her from complete infamy. She then works in a milliner's, but produces poorly and is let go at the end of the season. Simon Rosedale, the Jewish suitor who had proposed marriage to her when she was higher on the social scale, tries to rescue her, but she is unwilling to meet his terms: he wants her to use love letters she accidentally bought from her servant which prove the affair Bertha Dorset and Selden had years earlier. Lily refrains for sake of Selden's reputation, and secretly burns the letters when she visits Selden one last time. Eventually, Lily receives her $10,000 inheritance, which she uses to pay her debt to Trenor. Lily dies from an overdose, possibly accidental, of the sleeping draught to which she had become addicted. Hours later Selden comes to propose to her, but finds she has died. Only then is he able to be close to her in a way he never was able to when she was living and admit his true love for her.
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