The tale is set in Wales, and tells the story of a young woman named Rosina, who lives with her guardian, Sir Peter Vernon, and is secretly engaged to his son, Henry.
The narrator tells the story of how he became lost during a walk along the coast of Wales and sought shelter in what looked like a ruined tower, thanks to the hospitality of its housekeeper.
He is surprised at the comfortable furnishings within the tower, and is intrigued by a painting of a lovely young woman hung above the fireplace, entitled The Invisible Girl.
On the way, they were caught in a storm, and barely made it to shore before their boat crashed on some rocks, thanks to the guidance of a faint light in a nearby tower.
The sailors tell Henry that the tower is the home of a ghost named the Invisible Girl, who is often seen at night wandering the shore in search of her lost lover.
The three men spend the night in the tower, but Henry is too miserable to sleep, consumed by grief for his own lost love.
They grew up together and were very much in love, but Henry knew his father would not approve his marriage to a poor orphan, and so convinced Rosina to keep the engagement secret.
Sir Peter searched desperately for her, bitterly regretting his cruelty and furious at his sister for inciting his anger so unjustly.
Henry returns to search the tower while his companions repair their boat, but finds no sign of habitation other than a single lady's shoe.
The lovers are overjoyed to be reunited, and Rosina tells Henry that she took shelter in the tower after her banishment from the Vernon estate, and is still terrified of Sir Peter and his curses upon them.