King Lear, an aging monarch, decides to divide his kingdom among his three daughters - Goneril, Regan, and Cordelia. He asks them to profess their love for him, and the two elder daughters give exaggerated flattering speeches while Cordelia simply says she loves him according to her duty. Enraged, Lear banishes Cordelia and divides the kingdom between Goneril and Regan.

Lear's servant Kent tries to reason with him but is also banished. Goneril and Regan soon begin to undermine Lear's authority and reduce his retinue of knights. Lear goes mad with rage and grief, wandering homeless accompanied only by his Fool.

Meanwhile, the Earl of Gloucester's illegitimate son Edmund deceives him into believing his legitimate son Edgar is plotting to kill him. Edgar flees in disguise as a mad beggar called "Poor Tom." Edmund betrays his father to Regan and her husband Cornwall, who gouges out Gloucester's eyes.

Cordelia returns from France with an army to rescue Lear. Her forces are defeated by Edmund's army, and she and Lear are imprisoned. In the tragic climax, a remorseful Gloucester dies, Cordelia is hanged in prison on Edmund's orders, and the heartbroken Lear dies cradling Cordelia's body.

The subplot involving Gloucester and his sons Edgar and Edmund runs parallel to the main plot. Edgar eventually defeats Edmund in combat but is too late to save Cordelia and Lear.

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