Gwynplaine, son of Lord Clancharlie, has a permanent smile carved on his face by the King, in revenge for Gwynplaine's father's treachery. Gwynplaine is adopted by a travelling showman and becomes a popular idol. He falls in love with the blind Dea. The king dies, and his evil jester tries to destroy or corrupt Gwynplaine.
Two families, abolitionist Northerners the Stonemans and Southern landowners the Camerons, intertwine. When Confederate colonel Ben Cameron is captured in battle, nurse Elsie Stoneman petitions for his pardon. In Reconstruction-era South Carolina, Cameron founds the Ku Klux Klan, battling Elsie's congressman father and his African-American protégé, Silas Lynch.
The story of a poor young woman, separated by prejudice from her husband and baby, is interwoven with tales of intolerance from throughout history.