David Copperfield is born in Blunderstone, Suffolk, three months after the death of his father, who was also called David Copperfield. On the night of David's birth, his great-aunt Betsey Trotwood arrives at the "Rookery" — the Copperfield family home — and eagerly anticipates the birth of a baby girl. She insists that Clara Copperfield's baby must be called Betsey Trotwood Copperfield and that she will be her godmother. However, when the delivered child turns out to be a boy, Miss Trotwood is horrified (as her previous experiences with men have all ended badly) and storms out.
David grows up loved and cared for by Clara and their maid, Peggotty. When David turns eight, Clara meets Edward Murdstone, a stern man whom David does not receive warmly. Peggotty offers to take David with her to Yarmouth to visit her brother Dan and his family, and he accepts, forming a bond with Dan's niece, Emily. When they return, David finds, to his horror, that his mother has married Murdstone. Murdstone invites his equally stern sister Jane to live with them, and the two Murdstones quickly assume complete control of the household, defeating any resistance in Clara to their strict methods, denying David any comfort from her or Peggotty's affection, and disciplining him harshly for the slightest infraction. When Murdstone canes David for falling behind in his studies, David bites him and, as punishment, is sent to Salem House, a boarding school owned by Murdstone's unpleasant friend Mr. Creakle, who is particularly harsh towards David at Murdstone's request. David's only comfort at the school is his friendship with James Steerforth, an older student from a wealthy family, who first defends him from a gang of bullies and then helps him win the respect of other pupils.
David returns home for the holidays and finds that Clara has given birth to a baby boy. Soon after returning to Salem House, he is informed by Creakle that his mother and half-brother have died, and he returns home for the funeral. Peggotty is dismissed, but becomes engaged to a local acquaintance, Mr. Barkis.
With the Murdstones now in full control of the Rookery and David's future, Murdstone takes David out of school and sends him to work in his factory in London, arranging for the boy to live with Wilkins Micawber, who treats David like his own son. Micawber is sent to a debtors' prison shortly afterwards. When he is released, he and his family are forced to move to Plymouth, leaving David homeless. David runs away from London to Dover to find Betsey Trotwood in the hope that she will take him in. At the outset of his journey, he has all his possessions stolen and is forced to sell most of his clothing and travel on foot. He manages to find her, and despite her initial reluctance to have a boy in her house, she takes him in and writes to inform the Murdstones of his arrival. Over time, David bonds with Betsey's lodger, Mr. Dick, and Betsey herself begins to feel attachment to her great-nephew. When Edward and Jane Murdstone arrive to take David back, Betsey appoints herself David's legal guardian, giving the Murdstones a verbal scolding for their cruelty and angrily ordering them out of her house. They are not seen or heard from again.