Oliver is an orphan who lives until the age of nine in a poorhouse, where he goes hungry and suffers abuse by the Director, Mr. Bumble. The classic scene in which the half starved Oliver begs for some more food and is viciously denied by the obese Mr. Bumble exemplifies the inequity of Victorian society.
Oliver is then sent to work at a funeral home. Here, too, he is treated very badly. One day Oliver escapes and flees to London, where he gets involved with a gang of thieves and pickpockets headed by Fagin, a satanic character and corrupter of young boys.
Oliver now begins an underground, nocturnal, life together with his companions: Fagin, the Artful Dodger, Claypole, and most importantly Nancy, who is a thief and a prostitute but basically a good person who has been led astray by Fagin and her lover, the violent Bill Sikes. Nancy, affectionately known to Fagin's boys as "Nance" and Bill Sykes were both old pupils of Fagin. Oliver also comes under the influence of the mysterious Monks, another thief, who has some unknown connection to Oliver. It is later revealed that Monks has paid Fagin to keep Oliver in his clutches and turn him into a thief, as part of Monks' secret plan to destroy him.
One day the gang robs Mr. Brownlow, and Oliver takes the opportunity to run away from the group and is taken in by Mr. Brownlow. However he is then recaptured by the gang of thieves and persuaded to work as a thief by the mysterious and troubling Monks. But Oliver's first mission goes badly: he is sent to rob the house of Mrs. Maylie and her adopted granddaughter, Rose, but is injured during the mission. Oliver is treated by Mrs. Maylie and Rose who show compassion towards the little thief.
Fagin, with the help of Monks, tries to recover Oliver but is thwarted. Fagin's gang is broken up by the police and Fagin is arrested. Sikes kills Nancy in a moment of anger over her betrayal of the gang, but is himself killed while trying to escape...