Lieut. Ralph Harrison is in love with Major Marston's wife, who pretends to love him. Harrison's mother implores Capt. Jim Craig to intervene to save her son from dishonor. When Craig visits Mrs. Marston, Harrison appears, precipitating a quarrel during which Harrison is wounded in the shoulder. Craig then leaves, and the major discovers Harrison. The major kills Harrison, and places the blame on Craig. To avoid a scandal, Craig runs away. Madge Summers of the Secret Service tracks him down and the two fall in love, but Craig is arrested and taken back to the army post.

Renee is a French artist's model who uses morphine as an escape from the dull reality of her life. She recommends it to a neurotic artist because "it kindles the fires of genius." The artist quickly becomes addicted to the drug and the quality of his work begins to disintegrate. He takes on a new model, marries her, and starts her on the same path of moral degradation, until a guilt-ridden Renee decides to intervene in order to save them both. According to silent film historian Kevin Brownlow, THE DEVIL'S NEEDLE was banned by the state of Ohio, but the censor board reversed its decision after recognizing the positive message beneath the film's scandalous surface. This special edition was mastered from a 35mm preservation print of the 1923 re-release version. The only known surviving copy, the element suffers significant nitrate decomposition during some scenes.