I have a friend who loves this movie and says he is always dissolved in tears at the end:
John Carteret (Leslie Howard) is a wealthy man with a huge estate. He was set to marry Moonyeen Clare (Norma Shearer), but on their wedding day she was accidentally killed during the wedding ceremony by her drunken and jealous ex-fiance Jeremy Wayne (Fredric March), who actually meant to kill John; however, Moonyean stepped in front of him and took the bullet. Like Miss Havisham in Great Expectations, John has spent the rest of his life in mourning. However, Moonyeen has kept in touch with him from the next life. He runs the estate, and has a private retreat where he communicates with her spirit.
His close friend Dr. Owens tells him of Moonyeen's niece Kathleen, whose parents have drowned at sea. He begs John to adopt the child, and he does. Kathleen is five, but as she grows older she looks exactly like the dead Moonyeen (and is also played by Norma Shearer). Her childhood friend Willie (Ralph Forbes) wants to marry her, but she is interested in Kenny Wayne (also played by Fredric March), whom she meets in dangerous and romantic circumstances. However, Kenny is the son of Jeremy, Moonyeen's killer, who disappeared and was never found.
John refuses to let them marry and threatens to disinherit her. She leaves with Ken, but he sends her back again because he doesn't want to ruin her life. He is clearly a man of honor and character. However, John has been deeply affected by the events and has lost his ability to communicate with his dead wife, who perceives his anger and hatred as having set up a barrier she can't overcome.
Ken signs up for the Army and is gone for four years, returning as a disabled war veteran. He hides his condition, claims he no longer cares for Kathleen, and plans to go to America. John finds out the truth from Dr. Owens. He sees that Ken really cares for Kathleen and is not like his wastrel father. He tells Kathleen, and she runs off to tell Ken she still cares for him. John sits down to play chess with Dr. Owens, but apparently dozes off. Amused, Dr. Owens leaves him so that he can take his nap. John, however, has actually died, and his spirit now rises to join the awaiting spirit of Moonyeen, just as Kathleen is heard returning with Ken. John and Moonyeen are finally reunited in death.