Della decides to sell her beautiful, long hair to buy Jim a gold chain for his heirloom pocket watch. Jim, unaware of her sacrifice, sells his watch to buy Della a set of combs for her hair.
When they exchange gifts, both are initially heartbroken to discover the other has parted with something so precious. However, they quickly realize the depth of their love and the true meaning of the gift – their sacrifices symbolize their devotion to each other. The story ends with the narrator noting that the couple's love was "the wisest, the most generous, and the most valuable gift of all."
The story is a touching reminder that true love and selflessness are more valuable than material possessions. It highlights the power of sacrifice and the beauty of giving from the heart.