The aim of this essay is to discuss the impact of the third person omniscient narrator on the development of the plot of the story. In the case of O. Henry’s, The Gift Of The Magi, the author has properly utilised the device of third person narrative and detailed the plot of the story starting from its exposition or introduction, rising action, climax, falling action, and resolution or conclusion. These are connected with the plot of the story in a very inclusive way.