The story begins with Alice receiving some lessons from her older sister in the yard of their home. She is bored by the lessons and starts to daydream. She suddenly spots a white rabbit wearing an overcoat. She follows the rabbit down the rabbit-hole to Wonderland. The rabbit drops a key, and Alice finds it fits a door to a beautiful garden, but she is too big to fit in the door. She finds a bottle of water that says "Drink Me" and she drinks it and shrinks small enough to fit into the door, but left the key on a table. She wonders how to get the key, and find's a cake that says "Eat me" and she grows back to normal size, but then she can't fit in the door, and cries a pool of tears in the hallway. Then she runs into the rabbit, who runs off leaving a pair of gloves and a fan. She fans herself, then realizes that she's shrunk small enough that the gloves now fit, and she still has the key. She runs to the door to the garden, but runs into the puddle of tears, which turns into the sea (due to the salt content). She reaches shore, but is now more lost than ever. More wild things happen, and then she wakes up. She was dreaming the entire thing, when she fell asleep in the middle of her older sister's lesson. There really isn't much of a plot, its just a recounting of her dream.
“The Horse Dealer’s Daughter” is usual of Lawrence’s stories about the power of sexuality in life. Both main characters, Mabel Pervin and Dr. Jack Fergusson, have reached an impasse in their personal lives, and can go in new directions only when they confront their sexual needs. Despite their obvious reluctance and inexperience with their emotions, both Fergusson and Mabel accidentally but profoundly realize that they need each other. Their common awakening gives them both confidence and doubt at the same time (see paragraphs 158, 159, and 191). From paragraph 142 to the end, Lawrence takes great pains to emphasize their ambiguous feelings. As they approach change and growth, in other words, they also become apprehensive. Character development is not without cost.