Robert W. Chambers's masterwork opens in a prosperous, tranquil New York of 1920, where the government has legalized suicide and opened state-run Lethal Chambers. The narrator, Hildred Castaigne, leads a life of quiet ambition and visits an armourer named Hawberk and his daughter Constance. However, Hildred's mind harbors a dark secret: he has read the forbidden, infectious play titled The King in Yellow, a work so profoundly disturbing that its mere existence poisons human sanity and drives readers into despair. Hildred believes himself to be the rightful heir to the Imperial Dynasty of America and spends his days consulting a sinister cripple named Mr. Wilde, who operates as a 'Repairer of Reputations.'
Mr. Wilde presides over an underground network of desperate and compromised citizens, wielding secret influence and collecting vast sums of money. As Hildred becomes more deeply entrenched in his delusion, he wears a hidden diadem and a robe bearing the mysterious Yellow Sign, convinced that a massive political and spiritual uprising is imminent. He plots to remove his cousin Louis, an honorable cavalry officer who loves Constance, believing that Louis threatens his divine right to the throne.
Throughout these dark encounters, Hildred remains blind to the reality of his own mental collapse, viewing his delusions as a sacred calling. He enlists the aid of a broken former cashier named Vance, dispatching him to eliminate obstacles in their path. The narrative builds toward a terrifying climax as Hildred prepares to claim his empire, unaware of the fatal consequences awaiting those caught in his web.
The tension peaks during a midnight meeting near Washington Square, where Hildred confronts Louis and attempts to enforce his royal decrees. The tragic realization of Hildred's madness shatters the lives of those around him, culminating in a violent confrontation at Mr. Wilde's apartment. The story closes with Hildred confined to an asylum for the criminally insane, whispering of the King in Yellow while the true horror of his fractured mind settles over the tragedy.