A young governess arrives at a secluded English estate called Bly to care for two orphaned children, Miles and Flora, under the employment of their distant and indifferent uncle. Initially enchanted by the extraordinary beauty and angelic manners of her pupils, the governess soon discovers a dark and oppressive atmosphere haunting the grounds. She begins to see the spectral apparitions of Peter Quint, the former valet, and Miss Jessel, the previous governess, both of whom died under mysterious circumstances after engaging in a corrupting and illicit relationship with each other and the children. As the governess realizes that the children are secretly communicating with these dead spirits, she resolves to act as a protective barrier, determined to save their souls from damnation.
Supported only by the loyal housekeeper, Mrs. Grose, the governess engages in a tense psychological and spiritual battle against the unseen forces trying to claim the children. While Flora eventually denies seeing the ghost of Miss Jessel and is removed from the estate by Mrs.
Grose, the governess remains behind to confront Miles. In a final, desperate attempt to force the boy to confess his past misdeeds and break the hold of the spirits, the governess battles the apparition of Peter Quint directly in front of the child. Although the ghost is finally vanquished from the room, the immense strain proves fatal for Miles, who dies in the governess's arms.