A small boy is discovered to be the long-lost heir of a huge fortune. The trust is overseen by a very cold and unemotional old lord. The poor boy is send to live with the lord, but changes his heart.

Young Cedric "Ceddie" Errol (Freddie Bartholomew) and his widowed mother, whom he calls "Dearest" (Dolores Costello), live frugally in 1880s Brooklyn after the death of his father. Cedric's prejudiced English grandfather, the Earl of Dorincourt (C. Aubrey Smith), had long ago disowned his son for marrying an American. The earl sends his lawyer Havisham (Henry Stephenson) to bring Ceddie to England. As the earl's sons are all dead, Ceddie is the heir to the title. Mrs. Errol accompanies her son to England, but is not allowed to live at Dorincourt castle. For Cedric's happiness, she does not tell him it is because of his grandfather's bigotry. The earl's lawyer is impressed with the young widow's wisdom. However, the earl expresses skepticism when Mr. Havisham informs him that Cedric's mother will not accept an allowance from him ....