After Ingeborg Holm's husband becomes sick and dies, the family's small grocery store fails, Ingeborg becomes bankrupt, and she is forced to move to the workhouse. Her three children go to foster homes. Ingeborg simply must see them again.

A stranger comes to work at widow Halla's farm. Halla and the stranger fall in love, but when he is revealed as Eyvind, an escaped thief forced into crime by his family's starvation, they flee and become two of the many outlaws of Iceland's mountains.