On Christmas Eve, Jim and Della, a young married couple, move into their small, rundown flat. Despite their intense love, they are having financial difficulties and have little left over for Christmas gifts. However, Della is adamant about finding Jim the ideal present and decides to part with her most prized possession, her lovely, flowing hair, in order to buy him something special.

Della’s hair, which falls to her knees, is her most prized feature. She makes the choice to trade it for cash with a hairdresser named Madame Sofronie. Della decides to buy Jim a present with the $20 she is given.

Despite his limited resources, Jim is still looking for a special gift for Della. He treasures the gold watch that belonged to his grandfather and was handed down through the years. Finally, he makes the choice to sell the watch so that he can buy Della a lovely set of ornamental combs for her hair.

Della is eager to see Jim’s response when she gets home on Christmas Eve with the combs. She realises as she walks into their modest flat that Jim won’t be able to enjoy her gift as much as she had hoped because he has a surprise of his own. He says that he sold his watch to buy the combs for Della as he studies her short hair.

The irony of the situation leaves both Della and Jim speechless. They understand that the presents they picked were ideal for one another, but that they are now useless. Their most prized possessions were traded for gifts they can no longer use, meaning the sacrifices they made for the other were in vain.

They learn the true meaning of love and the spirit of giving at this poignant time. Material gifts pale in comparison to their mutual selflessness and devotion to one another. The narrator implies that Jim and Della’s love is a gift of immense value, more precious than any material possession, by equating their actions to those of the Magi.

The story ends with the narrator explaining that the Magi were wise men who brought gifts of great worth, but it was the gifts of the heart that truly mattered. “The Gift of the Magi” serves as a heartwarming reminder that love and self-sacrifice are the most valuable gifts we can offer to those we hold dear.