| Director | Carol Reed |
|---|---|
| Budget | $10 million |
| Box office | $40 million |
At a workhouse in Dunstable, orphans are served their daily gruel. Some boys draw lots, with Oliver drawing the tangled one, forcing him to approach Mr. Bumble and Widow Corney to ask for more gruel. Enraged, Bumble takes Oliver to the governors for punishment and then parades him through the streets to sell him as an apprentice. Mr. Sowerberry, an undertaker, purchases Oliver. Sowerberry's other apprentice, Noah Claypole, later insults Oliver's mother; Oliver retaliates and is imprisoned in the cellar. He discovers that the window grate is unlocked and escapes.
A week later, Oliver reaches London. He meets the Artful Dodger, who takes him under his wing. Dodger brings Oliver to a hideout for young pickpockets led by Fagin, who instructs the gang in the art of stealing. Fagin later meets with burglar Bill Sikes by the tavern. When Fagin returns to the hideout, he goes through a secret cache of treasures. Oliver wakes up, notices Fagin's secret, and startles him. Fagin explains that the trove is to help him in his old age.
In the morning, Sikes' girlfriend Nancy arrives at the hideout to collect his money. Fagin sends the boys out for the day, teaming Oliver with Dodger and Charley Bates. At a bookstall, Dodger steals a wallet from the wealthy Mr. Brownlow, who mistakes Oliver for the thief and has police arrest him. At the court hearing, the bookseller Mr. Jessop testifies that Oliver is innocent. Brownlow takes Oliver in, while Sikes and Fagin send Dodger to follow them.
Oliver has been living with Mr. Brownlow for several days. Sikes and Fagin are determined to get him back, as they believe Oliver may tell on them; Sikes forces Nancy into helping, as Oliver trusts her the most. The next day, Brownlow entrusts Oliver with a delivery for the bookshop. As he leaves, Brownlow notices a striking resemblance between Oliver and a portrait of his long-lost niece Emily. While walking through London, Oliver is sidetracked by Nancy, kidnapped by Sikes, and taken back to the hideout. Sikes is defied by Oliver, who in turn is protected by Nancy. When Fagin warns Sikes to remain calm, Sikes—taking Fagin by the scruff of the neck, nearly in a chokehold— threatens his life if their operation is compromised. Realising Sikes' violent nature, Fagin begins reconsidering his life as a thief but decides to keep to his old ways.
Bumble and Corney visit Brownlow after he begins searching for Oliver's origin. They present a locket belonging to Oliver's mother, who arrived at the workhouse penniless and died during childbirth. Brownlow recognizes the locket as Emily's, making Oliver his great-nephew, and throws the two out for keeping the trinket and information until they could collect a reward for it. Meanwhile, Sikes forces Oliver to take part in a house robbery. The robbery fails when Oliver accidentally awakens the occupants, but he and Sikes get away. While they are gone, Nancy, fearful for Oliver's life, goes to Brownlow, confessing her part in Oliver's kidnapping; however, she refuses to name Bill out of loyalty. She promises to return Oliver to Brownlow at midnight at London Bridge. She then goes to the tavern. When Sikes and Oliver appear, Sikes has his dog Bullseye guard the boy. Nancy starts up a lively drinking song to distract Sikes, but Bullseye alerts him, and Sikes gives chase.
As Oliver and Nancy depart at London Bridge, Sikes catches up to them and violently bludgeons Nancy to death. Sikes takes off with Oliver, but Bullseye returns to where Nancy has succumbed to her injuries and alerts the police. The dog leads Brownlow and an angry mob to the thieves' hideout. Sikes arrives there and demands money, as well as confessing that he killed Nancy. Upon seeing the approaching mob, the thieves disband and flee. Sikes runs off with Oliver, using him as a hostage. During the evacuation, Fagin loses his prized possessions, which sink into mud. Sikes attempts to flee to an adjacent roof, but is shot dead by the police. Fagin makes up his mind to change his ways, but Dodger appears with a stolen wallet. The two dance off into the sunrise together, happily determined to live out the rest of their days as thieves, while Oliver returns to Brownlow's home for good.