Part 2, Act 1

As the curtain rises on the second half of the play, we are swiftly brought up to speed with a narrated recap of the previous events before diving into an exciting new chapter: Nicholas's budding romance. However, before love takes center stage, Kate finds herself employed briefly as a lady's companion. Yet once again, she must fend off the unwanted pursuits of the persistent Hawk during an evening at the opera. When Kate seeks her uncle's help, he urges her to tolerate the advances for a while longer, to protect his own interests. Appalled, she finds solace in Noggs, who empathetically reaches out to Nicholas. Without hesitation, Nicholas rushes to London with Smike by his side.

By a twist of fate, they stumble into a coffeehouse and unwittingly eavesdrop on Hawk and Verisopht's conversation about Kate. This ignites Nicholas's fury, leading to a confrontation where he nearly beats Hawk with a horsewhip. The following day brings Nicholas into the company of the benevolent Mr. Charles and Mr. Ned Cheeryble. They enlist his help for Madeline Bray, a young woman weighed down by her father's reckless financial decisions. Having met her before while confronting Nickleby about his sister, Nicholas finds himself irresistibly drawn to her. Meanwhile, in a cruel twist, Squeers captures the wandering Smike in London. But fear not, for John Browdie, in town for his honeymoon, becomes Smike's unlikely savior, liberating the unfortunate lad.

Part 2, Act 2

In the bustling coffee room, a grateful Nicholas expresses his thanks to Browdie for rescuing Smike. There, he also encounters Frank Cheeryble, the Cheeryble brothers' affable nephew, who soon finds himself smitten with Kate. Nicholas then pays a visit to the Kenwigs, celebrating the arrival of their newest child. Amid the joyous occasion, Nicholas reveals the unexpected news of Uncle Lillyvick's marriage to an actress, stirring indignation from Mr. Kenwigs, who laments for his "defrauded, swindled infants."

Confiding in Noggs, Nicholas shares his deep feelings for Madeline Bray. Ever resourceful, Noggs soon uncovers a sinister plot: Ralph Nickleby and the greedy moneylender, Arthur Gride, scheme to cancel Bray's debts in exchange for Gride marrying Madeline. Ralph stands to gain from this deal, as Gride promises to leave his riches to him. Noggs implores Nicholas to wed Madeline at once, to rescue her from this grim fate. In a classic, heart-pounding climax, Nicholas appears just in time at Madeline's wedding, winning her hand.

Fortunes shift favorably for all, as Kate and Frank's love blossoms, and Uncle Lillyvick returns to the Kenwigs after his wife absconds yet again, this time with a wandering actor. Yet beneath the surface of this apparent happiness lies tragedy. Smike, heartbroken by his unrequited love for Kate, succumbs to a poignant death, echoing his earlier apothecary scene. Justice prevails as Squeers faces arrest, Hawk flees to France after shooting Verisopht, and Ralph, crushed by the revelation that Smike was the son he had unknowingly cast aside, ends his own life.

As Dickens's hallmark Christmas celebration unfolds, Edgar casts a somber shadow over the festivities with the appearance of a new Smike, shivering on the periphery of warmth and joy. In a tender moment, Nicholas scoops the boy into his embrace, as the curtain gently falls.