Nicholas and his sister Kate arrive penniless and jobless in London after the death of their father. Nicholas has an important encounter with Newman Noggs.

Nicholas has been found employment by his Uncle Ralph at Dotheboys Hall, an academy for boys owned by the drunken and brutal Wackford Squeers.

Nicholas is appalled to find that Squeers is being cruel to the crippled boy Smike and makes plans to escape. Nicholas and Smike set out to London.

Nicholas finds employment with the kindly Cheeryble brothers while Smike is in for a shock after Squeers arrives in London and begins plotting with Ralph.

Smike gets captured by Squeers but help is soon at hand from John and Tilda. Meanwhile, Nicholas is directed by the Cheerybles to meet Madeleine Bray.

Ralph and Squeers conspire one final time to steal Madeline’s inheritance papers as Smike takes a turn for the worse.

Noggs and Cheeryble come to Nicholas’s and Madeline’s aid as Squeers and Ralph finally get their comeuppance and the secret of Smike's parentage is revealed.