Della and Jim are a couple with no lavish life. On Christmas Eve, Della finds herself running out of time to buy Jim a gift.
Della only has $1.87 in her wallet. She wanted to buy her husband the perfect gift so she searched for something she can afford. She thought of buying a chain watch but her money wasn't enough.
She decided to sell her valuable possession, her hair. Della gained $20 for selling her hair and she bought a silver chain watch for Jim.
Jim came home from work and gave his present to Della. It was a comb that Della wanted however, she won't be able to use it because she cut her hair.
They talked to each other and found out that the chain that Della gave him is the possession he sold to buy the comb. The gifts that they received turned out to be useless.
The story ended by comparing the couple with the three wise men (Magi) who gave Baby Jesus gifts. Jim and Della are wiser than the Magi because their gifts for each other were given from love and sacrifice.