In the Paris of the late 19th century, Louise, wife of a general, sells the earrings her husband gave her as a wedding gift: she needs money to cover her debts.  The general secretly buys the earrings again and gives them to his mistress, Lola, leaving to go to Constantinople.

Where an Italian diplomat, Baron Donati, buys them.  Back to Paris, Donati meets Louise...  So now Louise discovers love and becomes much less frivolous.