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On 20 March 1888, Dr. Watson is visiting Sherlock Holmes when a masked gentleman arrives at 221B Baker Street. Initially introducing himself as Count von Kramm, he reveals himself as Wilhelm Gottsreich Sigismond von Ormstein, Grand Duke of Cassel-Felstein and hereditary King of Bohemia, after Holmes deduces his true identity. The King explains that, five years earlier, he engaged in a secret relationship with American opera singer Irene Adler, who has since retired and now lives in London. He is set to marry a young Scandinavian princess but worries that her strictly principled family will call the marriage off should they learn of this impropriety.
The King further explains that he seeks to regain a photograph of Adler and himself together which he gave to her as a token. His agents have failed to recover the photograph through various means, and an offer to pay for it was also refused. With Adler now threatening to send the photograph to his fiancée’s family, the King requests Holmes and Watson’s help in recovering it.
The next morning, a disguised Holmes goes to Adler’s house. He discovers Adler has a gentleman friend, barrister Godfrey Norton, who calls at least once a day. On this particular day, Norton visits Adler and soon afterward takes a cab to a nearby church. Minutes later, the lady herself gets into her landau, bound for the same place. Holmes follows in a cab and enters the church, where he is unexpectedly asked to be a witness to Norton and Adler’s wedding. Curiously, the newly-weds go their separate ways after the ceremony.
Returning to Baker Street, Holmes recounts his tale to Watson and expresses his amusement at his role in Adler’s wedding. He also asks whether or not Watson is willing to participate in an illegal scheme to figure out where the picture is hidden in Adler’s house. Watson agrees, and Holmes changes into another disguise as a clergyman. They depart Baker Street for Adler’s house.
When Holmes and Watson arrive, a group of jobless men meanders throughout the street. When Adler’s coach pulls up, Holmes enacts his plan. A fight breaks out between the men on the street over who gets to help Adler. Holmes rushes into the fight to protect Adler and is seemingly struck and injured, though it is later revealed that this is a self-inflicted splatter of red paint. Adler takes him into her sitting room, where Holmes motions for her to have the window opened. As Holmes lifts his hand, Watson recognizes a pre-arranged signal and tosses in a plumber’s smoke rocket. While smoke billows out of the building, Watson shouts "Fire!" and the cry is echoed up and down the street.
Holmes slips out of Adler’s house and tells Watson what he saw. As Holmes expected, Adler rushed to get her most precious possession at the cry of "fire"—the photograph of herself and the King. Holmes observes that the picture was kept in a recess behind a sliding panel just above the right bell pull. He was unable to steal it at that moment, however, because the coachman was watching him.
The following morning, Holmes explains his findings to the King. When Holmes, Watson, and the King arrive at Adler’s house at 8 am, her elderly maidservant sardonically informs them she had left the country via train earlier that morning. Holmes quickly goes to the photograph’s hiding spot, finding a photo of Irene Adler in an evening dress and a letter addressed to him, dated at midnight. In the letter, Adler tells Holmes he did very well in finding the photograph and taking her in with his disguises. Adler has left England with Norton, "a better man" than the King, adding she will not compromise the King, despite being "cruelly wronged" by him; she had kept the photo only to protect herself from further action he might take.
Thanking Holmes effusively, the King offers a valuable emerald ring from his finger as a further reward.[4] Holmes declines and says there is something he values even more highly: the photograph of Adler, which he keeps as a reminder of her cleverness. Watson concludes the story by noting that, since their meeting, Holmes always referred to Adler by the honourable title of "the woman."
In the short story’s opening paragraph, Watson calls her "the late Irene Adler," suggesting she is deceased. However, it has been speculated that the word "late" might actually mean "former." She married Godfrey Norton, making Adler her former name. (Doyle employs this same usage in "The Adventure of the Priory School" in reference to the Duke’s former status as a cabinet minister.)