When Pollyanna is orphaned, she's sent to live with her crotchety Aunt Polly. Pollyanna discovers that many of the people in her aunt's New England hometown are as ill-tempered as her aunt. But Pollyanna's incurable optimism - exemplified by her "glad game", in which she looks for the bright side of every situation - brings a change to the staid old community.

Ruth Holt, owner of a boardinghouse in a small college town, lives with her pretty niece "Sweet Lavender," who believes that Ruth is her mother. When boarder Clem Hale, president of the freshman class, is the victim of a prank played by several of his classmates, Lavender rescues him and the two fall in love. Clem's guardian, Horace Weatherburn, becomes concerned about his ward's adoration for a "commoner" and arrives to break up their romance. Ruth, who recognizes Washburn as Lavender's real father and the man who brought her sister grief, strongly opposes the match and sends Lavender off to boarding school. Upon learning that Clem is seriously ill, Lavender runs away to comfort her sweetheart and, in her plight, faints by the side of the road. Weatherburn finds her and is so touched by her concern, that he relents his previous disapproval. Ruth then reveals Lavender's parentage to her father who offers his blessing to the couple.

Sybil marries George Bruce, an alcoholic 20 years her senior, In order to provide for her crippled sister, Helen, and her brother, Geoffrey. Bruce becomes jealous of Sybil's attentions to young physician Robert Acton, and when Bruce suffers a heart attack and calls for digitalis, Sybil allows the vial to break and he dies.