The present paper is an attempt to discuss the use of symbolism by one of the most famous American short story writers, O. Henry, in his The Gift of the Magi. Before we can interpret the symbols, however, we look into the age in which the short story was written, the Modern Age, and O. Henry’s life. The story speaks of a young married couple living a moderate life in a moderate house. They only have a gold watch and the wife’s long and beautiful hair that they consider valuable. They sell both of them so they can buy each other gifts for Christmas. In this paper, the researchers try to break down those symbols and their relations to one another so that they may have a better understanding of the author’s intended messages.