In an old house on a Christmas Eve, the subject of ghosts is brought up. A man named Douglas tells of his sister's governess, who had reported seeing apparitions some years ago; in fact, she had recorded her experience in a manuscript that he promises to send for. Upon further questioning, it is learned that the governess was hired to take care of two young pupils who had been left under the care of an uncle. When this man hired the governess, he gave her implicit instructions that she was to cope with any problem and never bother him.
The governess' story opens on the day she arrives at her new position. Her charges — Miles and Flora — are perfect little children who would apparently never cause anyone any trouble. She grows very fond of them in spite of the fact that little Miles has been discharged from his school. In discussing this occurrence, the governess and Mrs. Grose, the housekeeper, decide that little Miles was just too good for a regular school.
The governess loves her position and her children, and she secretly wishes that her handsome employer could see how well she is doing. Shortly after this, she notices the form of a strange man at some distance. She wonders if the large country house harbors some secret. But some time later, she sees the same face outside the dining room window. When she describes this face to Mrs. Grose, she hears that it was that of Peter Quint, an ex-servant who has been dead for about a year.
Next the governess encounters another apparition in the form of a lady. Upon further consultation with Mrs. Grose, it is determined that this was the children's former governess, Miss Jessel, who died mysteriously about a year ago. When the present governess presses Mrs. Grose for additional information, she learns that Peter Quint and Miss Jessel had been intimate with each other and, furthermore, that both had been too familiar with the children.
