The story involves Mr. and Mrs. White and their adult son, Herbert. Sergeant-Major Morris, a friend of the Whites who has been part of the British Army in India, introduces them to the monkey's paw, telling of its mysterious powers to grant three wishes and of its journey from an old fakir to his comrade, who used his third wish to wish for death.
Sergeant-Major Morris, having had a bad experience upon using the paw, throws the monkey's paw into the fire but White quickly retrieves it. Morris warns White, but White, thinking about what the paw could be used for, ignores him.
Mr. White wishes for £200 to be used as the final payment on his house. The next day his son Herbert leaves for work at a local factory. Later that day, word comes to the White home that Herbert has been killed in a machinery accident. Although the employer disclaims tortious responsibility for the incident, the firm makes a goodwill payment to heirs of the deceased. The payment is £200.
Ten days after the funeral, Mrs. White, almost mad with grief, asks her husband to use the paw to wish Herbert back to life. Reluctantly, he does so. Shortly afterwards there is a knock at the door. Mrs. White fumbles at the locks in an attempt to open the door. Mr. White knows, however, that he cannot allow their revived son in, as his appearance will be too hideous. Mr. White was required to identify the body, which had been mutilated by the accident. It has now been buried for more than a week. While Mrs. White tries to open the door, Mr. White makes his third wish, and the knocking stops. Mrs. White opens the door to find no one there.