Mr. Henry Dashwood is leading a comfortable and happy life with his family at Norland Estate, which belongs to his uncle. He is the rightful heir to the property. However, after his uncle's death, it is revealed that his son, John Dashwood, and his grandson, Harry, are to inherit the estate. Mr. Henry Dashwood is obviously disappointed. He is concerned about the welfare of his wife and three daughters, who might have to lead a simple life with a very modest income. Before he dies, he calls his son, John, to his side and asks him to support Mrs. Dashwood and the girls. John decides to give his sisters three thousand pounds. In the meantime, Fanny Dashwood, John's wife, arrives at Norland Estate and soon takes charge of the house. She adopts an air of condescension towards her in-laws. Mrs. Dashwood feels slighted. Her daughters, especially Elinor, understand her plight but are helpless to improve their situation.
The presence of Fanny Dashwood at Norland changes the atmosphere of the house. She acts as the mistress of the house and treats her in-laws as mere visitors. Mrs. Dashwood tolerates her daughter- in-law's imposing manner only because of John, who is civil to everyone. However, Fanny succeeds in changing her husband's decision to assist his sisters financially. Therefore, John, who had made up his mind to give his sisters three thousand pounds, now decides against giving them anything. He is obviously under the influence of his wife.Mrs. Dashwood and her children are still living in Norland Estate because they are not able to find suitable accommodations elsewhere. Mrs. Dashwood hopes that her stepson will provide them with financial support. In the meantime, Fanny's brother pays the family a visit. His charming manners and grace win Elinor's heart. Mrs. Dashwood is happy for her daughter and hopes for a match between the two. But Marianne is not impressed by Edward Ferrars, as he does not fit the image of a dashing young man, which is her personal idea of a worthy suitor.
Marianne expresses her opinion about Edward to her sister, but Elinor does not agree with her views. Elinor considers Edward to be a good human being, reserved by nature but refined in taste. When Marianne becomes aware of Elinor's feelings for Edward, she decides to try to love him as a brother. In the meantime, Fanny takes note of the growing friendship between Edward and Elinor and warns Mrs. Dashwood against it. Mrs. Dashwood is offended and resolves to find a new home at the earliest possible convenience. Shortly afterwards, she receives a letter from her cousin, Sir John Middleton, who offers her a house at Barton Estate in Devonshire. The offer sounds reasonable. The Dashwood ladies start planning to move away from Norland.
Mrs. Dashwood informs John and Fanny about her decision to move to Barton, in Devonshire. John Dashwood expresses concern about their going to such a distant place. Nevertheless, preparations begin for the journey. After taking Elinor's advice, Mrs. Dashwood sells off their carriage and keeps only three servants. They send their furniture and servants ahead so that their house will be ready for immediate occupation. After bidding farewell to John and Fanny, they set off for their new home.