Matilda's family announces their move to Spain towards the end of the book. They must relocate since Matilda's father is a criminal whose number is about to be called. So, in a panic, she asks Miss Honey and then her family if she may leave the Wormwoods and live with Miss Honey permanently. However, her parents can't afford a servant so they can only offer her money to go back home.
Matilda decides not to take the money since she has found a new family who wants her. Also, she does not want to return to the Wormwoods since they are cruel to her. So, she leaves Miss Honey behind and goes back home.
At the end of the book, we find out that she has been adopted by the Wells family. She now has a new name - Bessie- and lives with them in their grand house.
Bessie/Matilda becomes a teacher like her mother before her. And since the Wells family has money, she is able to buy a nice house for herself near the school she works at.
In addition, she also finds love again. It turns out that Mr. Wells was wrong about his wife being dead. She lived in another town near them and had a mental breakdown years ago. Since then, she has been in and out of hospitals. However, she seems healthy now and loves seeing all her children lead good lives.
Wormwood has been selling stolen automobiles. Matilda requests permission to live with Miss Honey, which her parents reluctantly grant. As the Wormwoods drive away, never to be seen again, Matilda and Miss Honey discover their happy ending.
She and Harry sign the papers for Miss Honey to adopt Matilda. The family departs, and the film concludes with Matilda and Miss Honey enjoying a good time at the home, with Miss Honey becoming the new principal of Crunchem Hall.
Matilda is granted her wish that she can go to school. In the end, they both find happiness.
Matilda is set in an English hamlet, specifically Matilda's house, school, and, briefly, Miss Honey's country retreat. Matilda lives in a comfortable two-story, three-bedroom house with a kitchen, living room, and dining room on the main level with her parents. She has two younger sisters, one who is interested in becoming a nun and one who wants to be a doctor like their father. Matilda would like to be a poet but cannot afford to study poetry at university so she works as a teacher. She enjoys writing poems that make people laugh or cry.
Matilda's world is turned upside down when her mother dies and her father remarries. His new wife does not like children and gives birth to her own daughter, Margery, who is about the same age as Matilda. This causes Matilda to feel left out and unwanted. She feels like no one loves her anymore. Her father has also hired a young teacher named Miss Honey to replace Matilda after she finishes teaching for the year. Miss Honey starts teaching mathematics to both girls even though Matilda can't write any numbers. This makes Matilda feel even more alone than before.
One day, while walking home from school with her sister Rebecca, they meet a man named Bertram who asks if either of them want to go fishing with him. Both girls say yes and then follow Bertram back to his cottage where he tells them to wait outside.
Throughout the story, the major conflict, or dilemma, in Matilda is that most of the adults are harsh to the children. This is eventually resolved when the Wormwoods let Matilda to reside with Miss Honey and Miss Trunchbull departs following her "encounter" with her brother Magnus. However, this only sets up the next conflict.
There is also a subplot involving Matilda's friendship with a girl named Dolly who lives across the street from her. The two become friends after Dolly's father dies and her mother moves to Australia to take a job as a teacher at the same school as Matilda. However, once Mrs. Wormwood finds out about their friendship, she forbids Matilda from seeing Dolly anymore. When Dolly hears about this, she cries herself to sleep every night for a week straight until Mrs. Wormwood lets her see Matilda again.
Finally, there is a love triangle between Matilda, Dolly, and Tony Gentry. Tony is rich and handsome and goes to school with Dolly but he likes Matilda. One day, Tony asks Matilda out on a date but she says no because she likes Dolly. Then, Dolly asks out Matilda but she says no again because Tony wants her to go with him. Finally, Tony gives up and doesn't ask anyone out again.
Matilda decides to go with Dolly anyway despite Tony going without asking anyone else out.
Miss Jennifer Honey, Matilda's sweet-natured primary school teacher, is revealed to be her paternal aunt (or step-aunt in the film). Miss Trunchbull, terrified, then disappears and hands her house back to her niece, after which Miss Honey becomes the new headmistress.
Matilda learns that evil cannot be destroyed but only transformed into something else. When asked if Miss Trunchbull had become good, Matilda replies "No" before adding "But she'll be needed."
This scene comes right after the one where Matilda burns the bad teacher on the hand with her magic ink pen, causing her to flee in fear. It can be assumed that Miss Trunchbull has abandoned her plan to destroy Matilda and has gone looking for someone more suitable to take over her role as villain.
As she leaves, Miss Trunchbull tells Matilda that they will meet again someday, which implies that she will continue pursuing her revenge against the young witch.
However, since Miss Honey is shown to be a kind woman who loves her students, it can be assumed that she would stop Miss Trunchbull if she saw any sign of harm coming towards Matilda. This means that Miss Trunchbull must have told someone about Matilda's attack, which will bring about her downfall.