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With the world on the edge of WWII, Miss Pettigrew (McDormand), a governess, has just been fired from her recent client, indicating that she was hard to work with. With very little money, she immediately takes another governess's client, Delysia Lafosse (Adams).

When Miss Pettigrew gets to the apartment, she soon learns that Delysia is seeing three men: a stage producer's son who can give her the leading role in a stage production that will be shown on West End; another who has just gotten out of jail, but to Miss Pettigrew is the perfect gentleman; and the rich owner of the nightclub Delysia sings in, who can guarantee her a luxurious life. Each relationship shows different dimensions. With Phil, the producer's son, Delysia must constantly fight to keep him, as her competition for both his heart and the role is playing just as hard. Phil (Tom Payne) is astounded by her beauty and her class, but is truly not in love, but infatuation. Nick (Mark Strong), the owner of the night club, is very controlling of Delysia, but she stays with him for the lifestyle he provides. It is clearly shown that Michael (Lee Pace), the pianist, cannot provide for Delysia the way the others can, but the emotions between the two of them are mutual and real.

After a hectic morning with Delysia, Miss Pettigrew goes with Delysia around the town. She then is given Delysia's turquoise scarf, which was designed by Joe Blomfeld (Ciarán Hinds), a man whom is seen later in the film at a fashion show Delysia takes Miss Pettigrew to see. When Miss pettigrew is getting some food, she meets Joe Blomfeld who compliments her on how the scarf looks nice on her. She accidentally spills her plate on him, and walks away while he isn't looking, utterly embarrassed.

That night Delysia holds a party for Phil's announcement of the casting of his father's show. When Miss Pettigrew finds that Phil does not intend to choose Delysia, she convinces him that he is the most important man in Delysia's life. He then announces to the entire party, including Michael (who is playing at the party) Delysia's casting, and their involvement with each other. Delysia is surprised, but goes along with it to secure her role.

Afterwards, Delysia is to sing her last night at the club. In the carriage, Delysia reveals to Miss Pettigrew that her name is actually Sarah Grub, an that Michael is the only one who knows this about her, but he loves her no matter what her name is. The party at the club starts out well, but as she goes onstage to sing, Michael changes the song to "If I Didn't Care", which causes Delysia to realize her true feelings and her eyes to water during the song. After the song, there is a air bomb drill, and while they are sheltering themselves under the piano, Miss Pettigrew tells Delysia of her previous love, and how she should go after Michael. Once the lights return, Delysia sees Phil kissing another woman, and immediately withdraws herself from the play and his life. She runs after Michael to stop him, but is stopped by Nick. She struggles on to Michael, and Michael, driven by the way Nick is treating Delysia (and an encouragement from Miss Pettigrew) punches Nick in the jaw. Nick counters by punching Michael twice to the floor. Nick starts to walk away in triumph, but Delysia leans down and proposes to Michael, which gives him the strength to punch Nick out cold. He then accepts Delysia's proposal, and they kiss in front of a cheering crowd.

The next morning, Miss Pettigrew returns to the flat, to find Delysia (now referring to herself as Sarah) and Michael leaving for a gig in New York. They both thank each other for a lovely day, and they part, hopefully to find one another again. Miss Pettigrew returns to the station, penniless and jobless once again, when she is approached by Joe. He has been looking for her all night, convinced that she is the one. The story ends with the two of them walking out of the station, arm in arm.