Gwendolen gambles away all of her money, only to then find out that her family is financially ruined. Daniel meets Mirah when he saves her from trying to drown herself.
Gwendolen starts to go crazy with guilt over marrying Grandcourt. Daniel becomes thoroughly involved in finding Mirah's long-lost family. He meets Mordecai.
Grandcourt drowns. Daniel meets his real mother and finds out that he's Jewish. He proposes to Mirah. Gwendolen resolves to be a better person.