After his father's suicide, Stephen Dallas leaves his luxurious home and moves to a small town where he marries Stella, a woman of a lower social class. The marriage is unsuccessful, and Stephen separates from Stella, going back to New York and leaving her to raise their daughter, Laurel. Years go by, and as Laurel grows into a young woman, Stella realizes she can't provide for her properly. She agrees to divorce Stephen so that he can marry Helen Morrison and provide a good home for Laurel. Initially, Laurel refuses to leave her mother, but when Stella marries a drunkard, Laurel is forced to live with her father. Laurel later marries Richard Grovesnor, a wealthy and promising society man. Stella watches the ceremony through a window, standing in the rain outside the Morrison home.