The series follows the plot of Cao Xueqin's novel Dream of the Red Chamber. The series begins with the mother-less child, Lin Daiyu - whose beauty and intelligence surpasses all - moving into her maternal grandmother's family in the capital. There, the child meets numerous relatives, one of whom is Jia Baoyu, her mother's nephew, and male protagonist. Baoyu was borne with a jade tablet and so, is treated like a fragile egg, and is spoiled by his grandmother. He often spends his time with his female cousins and maids instead of being in his studies. One of the cousins he hangs around with is Xue Baochai.

As the story goes on, Baoyu and Daiyu eventually fall in love with each other, but Daiyu is not very well liked by the family, and instead, the family members favor Baochai. Eventually, Baoyu and Baochai are forced to marry, and Daiyu dies of a broken heart. The series ends with the Emperor confiscating the Jia family properties and the family members scattered, each to their own tragic end.