In 19th-century England, a young orphan boy named Oliver is born into a life of misery and hardship at a workhouse. After drawing the short straw among the other children who are also subjected to harsh conditions, Oliver is dared to ask for more gruel, leading to him being punished and subsequently offered for sale to anyone willing to take him. He is first apprenticed to an undertaker, but after clashing with other employees, he escapes to the streets of London, hoping for a better life. Hungry and alone, Oliver's fortunes seem to change when he encounters the Artful Dodger, a boy his own age, who introduces Oliver to Fagin, an elderly man who leads a gang of juvenile pickpockets.

Fagin takes in Oliver, and under his questionable guidance, the boy is taught the tricks and trades of pickpocketing. Though initially unaware of the illicit nature of his new companions' activities, Oliver is thrust into the gritty underworld of London's crime scene. His innocence stands out amongst the seasoned young thieves and Fagin's sinister associate, Bill Sikes, a brutal career criminal. Oliver's attempt at a first theft goes wrong, causing him to be apprehended, but rather than condemning him, the victim of the theft, Mr. Brownlow, takes pity on Oliver, offering him a chance at a genuine and caring home, a stark contrast to his former life. However, Fagin and Bill Sikes conspire to exploit Oliver's newfound connection for their own benefit, threatening his hopes for a better future.