A young couple who were very much in love with each other, but can barely afford their living due to their very bad economic condition. For Christmas, the girl decides to buy her husband a chain for his prized pocket watch given to him by his father. To raise the funds, she has her prized long hair cut off and sold to a wig maker. Meanwhile, the boy decides to sell his watch to buy his wife a beautiful set of combs for her lovely, knee-length hair. Although each is disappointed to find the gift they chose rendered useless, each is pleased with the gift they received, because it represents the other's love for them. O. Henry ends the story by clarifying the metaphor between the characters in the story and the Magi (Three Wise Men, said to have visited Jesus after his birth, bearing gifts).
In our hindi adaptation as a music video, Sameera plays the girl-next-door who is attaracted towards a boy in the locality. The boy is passionate towards the bike accessories, so the girl decides to present them but falls short of the money. Then she sell off her beautiful hair to fetch the remaining money, only to know that the boy, in order to gift her a beautiful saaree and a necklace, has sold off his most beloved bike.
The moral of the story is that physical possessions, however valuable they may be, are of little value in the grand scheme of things. The true unselfish love that the characters of the story share is greater than their possessions.