The story is set in the Guangzong period of the Song Dynasty (960-1279). Du Liniang, the daughter of the provincial governor, asks to be privately tutored in order to appear educated and well-mannered when she marries, to bring honor to her parents.

After studying her first love poems, she dreams of meeting a young scholar in a peony pavilion in the garden. Moved by the dream, she takes a stroll in the garden, but becomes extremely sad when she does not find the scholar. After losing a lot of weight and when she is about to die, Du paints a self-portrait and asks her maid to hide it under a stone by the pavilion.

On the eve of the traditional Mid-Autumn Festival, Du dies. Shortly after, a scholar called Liu Mengmei arrives in town. He finds Du's painting by chance and that night sees her in a dream, where she asks him to revive her by opening her coffin.

Liu does this and miraculously Du is resurrected and reunited with her parents.