Enredo

Little Sara Crewe is placed in a boarding school by her father when he goes off to war, but he does not understand that the headmistress is a cruel, spiteful woman who makes life miserable for Sara.

Sara Crewe (Mary Pickford) a rich and privileged child has to leave her luxurious Bombay home to attend Miss Minchin's (Katherine Griffith) exclusive boarding school in London. Accompanied by her father Capt. Crewe (Norman Kerry), who must leave her, to travel abroad to take care of his wealthy diamond mines. It is a tearful farewell for both, but Sara soon adjusts to her new surroundings. Miss Minchin is very proud to have this new wealthy girl in her establishment, even referring to her as a "Little Princess" to the envy of the other pupils. But Sara, being a kind and generous child, loves to share her privileges with all. She is especially happy to befriend the school slavey Becky ( Zasu Pitts). Sara becomes popular for her late night wonderous and mystical fairytales she weaves for her entranced audience until Miss Minchin catches them, but Sara is quickly forgiven. A lavish expensive party is given for Sara's 10th birthday to share with her fellow classmates. While the party is proceeding happily with Sara in all her glory,Capt.Crewe's solicitor arrives with the tragic news of the captains death leaving his daughter a pauper. A shocked and angry Miss Minchin summons Sara with the grim news and orders her to sleep in the attic and says that from now on she must earn her keep. It is Becky who now gently comforts a grieving Sara as together they struggle to survive the harsh drudgery under Miss Minchins reign. As the months pass the bleak situation seems without hope for Sara as she grows tired and hungry from the daily menial tasks. John Carrisford(Gustav van Seyffertitz), along with his valet Ram Dass(George A.McDaniel), move into the house adjoining Miss Minchin's school. With the Christmas holidays approaching the school echoes of joyous preperations for the other girls. Snobby Lavinia(Lorretta Blake) seizes the opportunity to belittle Sara as she labours with one of her demeaning chores. Heartbroken she retreats to her dreary attic room to rest as Ram Dass observes through his window her bleak surroundings. He tells his master about the dear little one, who is a kind and gentle soul to all. Together they conspire to surprise Sara with a grand feast. As she enters her room, to her disbelief, a table of food and finery is set. She anxiously begs Becky to come see if it is all real.As they are about to devour the sumptuous food, Miss Minchin enters to stop them. Watching from their window John Carrisford and his servant hurry to their rescue. Soon the news is revealed he was Capt.Crewe's best friend and has been searching for Sara as she is indeed an heiress to millions. A stunned and bewildered Miss Minchin is shocked as Sara and Becky are led away to live their new life. True to Sara's generous and kind heart, at her insistence a Merry Christmas is had by all including the neighbourhood underprivileged children.