On a cold New Year's Eve, a young, poor girl tries to sell matches in the street. She is already shivering from cold and early hypothermia. Still she is afraid to go home because her father will beat her for not selling any matches.

The girl lights the matches to warm herself. In their glow, she sees several lovely visions including a Christmas tree and a holiday feast. As she lights the next match, she sees a vision of her grandmother,the only person to have treated her with love and kindness. She strikes one match after another to keep the vision of her grandmother alive for as long as she can.

 After running out of matches, the child dies and her grandmother carries her soul to Heaven