In the 1950s, Myrtle "Tilly" Dunnage returns to her hometown of Dungatar, an Australian country town, to take care of her ill mother, Molly. The people of Dungatar sent Tilly away at the age of ten because of false accusations of murder, after the death of fellow student Stewart Pettyman.
Tilly, who has since become an expert dressmaker trained by Madeleine Vionnet in Paris, starts a dressmaking business and transforms the locals with her couture creations. Many of the townsfolk who revile her nevertheless arrange for her to make them couture outfits. Sergeant Farrat, the town's policeman with an eye for beautiful fashion, liaises with Tilly in exchange for dressmaking assistance and design advice. Ted, the eldest son of the town's poor family, begins to pursue Tilly, and tries to assist her in standing up to the vicious gossip and small-minded attitudes of the townsfolk.
Most of the women in town arrange for Tilly to create individual gowns for the town dance. She also makes her own frock, but when she and Teddy, the town's heartthrob, arrive at the dance, her name has been removed from all the tables in the hall, and one of the townsfolk blocks the door to stop her coming in. Teddy finds her crying outside, and takes her back to his ramshackle caravan. There, he helps her remember the 'murder' she doesn't remember committing: as a bastard child, she was teased and bullied unmercifully by the rest of the town children. One day Stewart Pettyman, the abusive and physical bully, cornered her and charged at her, head-down like a bull, intending to wind her and probably injure her severely. Instead, she stood aside at the last moment, and Stewart hit the wall head on at a run and broke his neck. Sergeant Farrat arranged for her to go to a Melbourne boarding school, where she began her dressmaking education.
Tilly and Teddy make love, then, later on top of a silo, he tells her of the fun he had as a boy, jumping into the town's wheat bins. He then proceeds to do it, despite Tilly's warning cries. The silo holds sorghum instead of wheat, and Teddy suffocates as he sinks into the grain.
Tilly remains in town, and as the townsfolk blame her for Ted's death and abandon her again, she begins making clothing for the neighbouring towns' women. A town-based rivalry begins. Then Molly Dunnage dies. Shortly afterwards, one of the town's meanest gossips is critically injured while she is snooping, and the town's chemist drowns. Both of these deaths are accidents. Tilly proceeds to tell the town councilman's wife, Marigold Pettyman, the truth about Tilly's heritage and Stewart's death, that Councilman Evan Pettyman is Tilly's father and he has also been drugging Marigold and assaulting her at night. Marigold then murders her husband and attempts to commit suicide using the same drug her husband used on her.
The sergeant is horrified when a District Inspector comes to investigate the sudden surge of deaths. Tilly, while fitting one of the women from the neighbouring town, hears of an upcoming Eisteddfod and suggests that drama should be included. The local townsfolk come to her to make the costumes for their version of Macbeth, which they do not know and want to have staged in Baroque costumes. Tilly refuses to do so unless she is paid for past work and upfront for the costumes. The money is taken from funds which should have been sent off to insure the town's buildings. Tilly makes all the costumes, and watches as the entire town departs to either participate or watch the performance. She then covers the town in petrol and sets her house on fire, taking only her sewing machine, Tilly leaves by train, leaving the burnt town for the locals to discover after the show.
