The novel is set in the mid-19th century, but flashbacks to the history of the house, which was built in the late 17th century, are set in other periods. The house of the title is a gloomy New England mansion, haunted since its construction by fraudulent dealings, accusations of witchcraft, and sudden death. The current resident, the dignified but desperately poor Hepzibah Pyncheon, opens a shop in a side room to support her brother Clifford, who has completed a thirty-year sentence for murder. She refuses all assistance from her wealthy but unpleasant cousin, Judge Jaffrey Pyncheon. A distant relative, the lively and pretty young Phoebe, arrives and quickly becomes invaluable, charming customers and rousing Clifford from depression. A delicate romance grows between Phoebe and the mysterious attic lodger Holgrave, who is writing a history of the Pyncheon family...
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