Time has passed. Della and Jim, the young couple from O. Henry's short story, are now elderly. At their yearly Christmas Eve visit to a simple coffee shop, they encounter a melancholy woman. Touched by her sadness, they tell their story in a flashback scene of their first Christmas together when they each sold their most precious possession to buy the other a present. That experience changed forever their idea of buying expensive Christmas gifts. Instead they exchange the most priceless of all, love.