Margaret Schlegel receives a letter from her sister Helen, who is visiting the Wilcox family at Howards End. A misunderstanding sets in motion events which intertwine the lives of the Schlegels, the Wilcoxes and the Basts.

Margaret receives an offer from Henry which changes her plans significantly. Helen is distraught to learn the Basts have slid into poverty. In a dramatic encounter at Evie Wilcox's wedding, the three families collide.

Refusing to punish Henry for his past transgressions, Margaret resolves to uphold their engagement. Helen unexpectedly leaves for Europe. The Schlegels, the Wilcoxes and Leonard Bast have a final encounter.