As LuLing prepares to join the Chang family even before her official wedding, her aunts begin sewing new clothes for her and preparing her for her new role as a wife. But Precious Auntie spends her time writing. Finally, one night, Precious Auntie hands LuLing a bundle of papers that contains the story she has documented about her life. LuLing reluctantly reads the pages, which relate most of the stories Precious Auntie has been telling her over the years. However, when LuLing reaches the point where Precious Auntie writes that she is about to tell her the truth of why she hates Mr. Chang, LuLing tosses the papers on the floor. She refuses to read anything that will spoil her upcoming wedding and her new life.

Later, when Precious Auntie asks if LuLing has read the entire story, Luling lies. She tells Precious Auntie that she has read it all but nothing she has read has changed her mind about marrying into the Chang family. At this, Precious Auntie leaves the room and runs away from the house. What LuLing has not realized is that at the end of the story, Precious Auntie confesses that she is LuLing’s real mother. Because LuLing did not read that far, she remains unaware of this.

The next morning, Precious Auntie is not present at the breakfast table. She has run away before when she felt angry, but she has never stayed away this long. Then there is a shriek from the ink studio, and the women of the household rush to the room. The studio looks as if a wild animal has ravaged it. There are ink stains on the walls and the floor. Then LuLing hears someone say, “She is dead.” When LuLing sees Precious Auntie lying on the floor, it takes her a while to realize that the woman is dead, the victim of suicide.

Shortly afterward, Mrs. Chang comes to visit the house. She has a letter from Precious Auntie in her hand. In the letter, Precious Auntie curses the Chang family. When Mrs. Chang is told that Precious Auntie is dead, LuLing’s wedding is cancelled.

The next day, one of the uncles comes home from Peking to inform the family that the ink business in the city has burned to the ground. The oldest uncle had a dream about Precious Auntie, and while he dreamt, he tipped over an oil lamp. As the result of this, the ink store and the stores on either side now lay in ruin, destroyed by the fire. Not only has the family lost their business but they might also be responsible for the damages to the other two shops. They fear they will soon be destitute.

The eldest uncle, however, meets a monk who claims to be able to catch ghosts. The uncle invites the monk to his home. The monk performs a ceremony, after which he claims the family’s bad luck is over. They will now find peace.

By this time, LuLing has discovered that Precious Auntie was her real mother. She feels responsible for her mother’s death. She had been mean to her and turned her back on the only person who really loved her.

To assure that the peace remains in the household, the family decides that LuLing, Precious Auntie’s bastard child, must leave. They send LuLing to an orphanage.