When Arthur Clennam returns to England after many years abroad, his curiosity is piqued by the presence in his mother's house of a young seamstress, Amy Dorrit. The cold and forbidding Mrs Clennam isn't usually given to charity, so why has she made an exception in taking on Amy? Is she making reparations for a past wrongdoing? Does it have anything to do with Arthur's father's dying words and the pocket watch with its mysterious inscription, 'do not forget'?
Arthur befriends Amy Dorrit and involves himself in her family's affairs. If, as he suspects, his family have something to do with their ruin, the least he can do is pay off her brother's debt and give him the chance to start again. Arthur himself is planning to start again with a new job, and perhaps a renewed love for childhood sweetheart Flora Casby.
Mr Dorrit is released from the Marshalsea after more than twenty years, and takes his family abroad to reinvent themselves as members of society. Miss Wade commissions Rigaud to spy on Pet and Henry Gowan, and he takes the chance to follow the Dorrits abroad and find out what connects them to the House of Clennam.
The Dorrits arrive in Venice, and Fanny renews an old acquaintance with Edmund Sparkler and his redoubtable mother Mrs Merdle. Meanwhile, Amy makes a friend in Pet Gowan, united through their mutual affection for Arthur, and Rigaud scents a deeper connection between the Dorrits and the House of Clennam.
Mr Merdle's death and the collapse of Merdle's Bank sends shockwaves through London as thousands face financial ruin. Arthur returns to the Marshalsea a prisoner, Amy goes back to her birthplace to look after him as he lies gravely ill, and Rigaud returns to play out his blackmail in the Clennam house.