In the early 19th century, young P. T. Barnum and his father Philo work for the wealthy Hallett family, where Barnum falls for their daughter, Charity. Despite the social divide, they maintain their relationship through letters until reuniting as adults. Eventually, they marry and have two daughters, Caroline and Helen, living a humble life in New York City. However, Barnum is driven by a desire for more than just a simple existence.

Barnum loses his job as a shipping clerk when his company goes bankrupt. Desperate, he secures a bank loan by using his former employer’s lost ships as fake collateral and opens Barnum’s American Museum. Initially, the museum struggles, but with his daughters’ suggestion, Barnum recruits “freak” performers, including Lettie Lutz, a bearded lady, and Charles Stratton, a dwarf. This strategy boosts attendance but also attracts protests and negative reviews from critic James Gordon Bennett.

Barnum rebrands his venture as “Barnum’s Circus” and partners with playwright Phillip Carlyle to enhance publicity. Carlyle falls for African American trapeze artist Anne Wheeler, despite societal prejudices. The circus gains more recognition, and Barnum persuades Swedish singer Jenny Lind to tour America. Her debut is a success, but as Barnum gains favor with the elite, he distances himself from his performers, leaving them to face hostility on their own.

Phillip and Anne’s relationship faces challenges due to racial prejudices. Meanwhile, Barnum’s growing fame and Lind’s romantic advances cause tension in his marriage. When Barnum rejects Lind, she retaliates with a public kiss, causing a scandal. Barnum returns to find his circus in flames after a clash between protesters and his troupe. Phillip is injured while trying to save Anne, and Barnum’s mansion is foreclosed. Charity, feeling neglected, takes their daughters to her parents’ home.

Barnum, now at his lowest, finds solace in his troupe, who still consider themselves a family. Inspired, he decides to rebuild his circus and prioritize his loved ones. Phillip, recovering in the hospital, offers his share of profits to help Barnum rebuild in exchange for a partnership. Barnum accepts, transforming the circus into an open-air tent to cut costs.

The revamped circus becomes a massive success. Barnum appoints Phillip as the ringmaster, allowing him to spend more time with his family. In a heartwarming conclusion, Barnum arrives on an elephant to attend his daughters’ ballet recital, signifying his renewed commitment to his family.