The Scarlet Letter (1850) was originally intended to be one of several short stories, but Hawthorne was persuaded to expand it into a novel. He felt some misgivings as to the success of the work:

"Keeping so close to the point as the tale does, and diversified in no otherwise than by turning different sides of the same dark idea to the reader's eye, it will weary very many people and disgust some."

The plot bears a remarkable resemblance to that of Lockhart's striking novel, Adam Blair. The "dark idea" that fascinates Hawthorne is the psychological state of Hester Prynne and her lover, Arthur Dimmesdale, in the long years that follow their lawless passion. Their love story hardly concerns him at all. The interest of the novel does not depend on the development of the plot. No attempt is made to complicate the story by concealing the identity of Hester's lover or of her husband. The action takes place within the souls and minds of the characters, not in their outward circumstances. The central chapter of the book is named significantly: "The Interior of a Heart." The moral situation described in The Scarlet Letter did not present itself to Hawthorne abstractly, but as a series of pictures. He habitually thought in images, and he brooded so long over his conceptions that his descriptions are almost as definite in outline and as vivid in colour as things actually seen. His pictures do not waver or fade elusively as the mind seeks to realise them. The prison door, studded with pikes, before which Hester Prynne first stands with the letter on her breast, the pillory where Dimmesdale keeps vigil at midnight, the forest-trees with pale, fitful gleams of sunshine glinting through their leaves, are so distinct that we almost put out our hands to touch them. Hawthorne's dream-imagery has the same convincing reality. The phantasmagoric visions which float through Hester's consciousness—the mirrored reflection of her own face in girlhood, her husband's thin, scholar-like visage, the grey houses of the cathedral city where she had spent her early years—are more real to her and to us than the blurred faces of the Puritans who throng the marketplace to gaze on her ignominy. Although the moral tone of the book is one of almost unrelieved gloom, the actual scenes are full of colour and light. Pearl's scarlet frock with its fantastic embroideries, the magnificent velvet gown and white ruff of the old dame who rides off by night to the witch-revels in the forest, the group of Red Indians in their deer-skin robes and wampum belts of red and yellow ochre, the bronzed faces and gaudy attire of the Spanish pirates, all stand out in bold relief among the sober greys and browns of the Puritans. The tense, emotional atmosphere is heightened by the festive brightness of the outer world.

The light of Hawthorne's imagination is directed mainly on three characters—Hester, Arthur, and the elf-like child Pearl, the living symbol of their union. Further in the background lurks the malignant figure of Roger Chillingworth, contriving his fiendish scheme of vengeance, "violating in cold blood the sanctity of a human heart." The blaze of the Scarlet Letter compels us by a strange magnetic power to follow Hester Prynne wherever she goes, but her suffering is less acute and her character less intricate than her lover's. She bears the outward badge of shame, but after "wandering without a clue in the dark labyrinth of mind," wins a dull respite from anguish as she glides "like a grey and sober shadow" over the threshold of those who are visited by sorrow. At the last, when Dimmesdale's spirit is "so shattered and subdued that it could hardly hold itself erect," Hester has still energy to plan and to act. His character is more twisted and tortuous than hers, and to understand him we must visit him apart. The sensitive nature that can endure physical pain but shrinks piteously from moral torture, the capacity for deep and passionate feeling, the strange blending of pride and abject self-loathing, of cowardice and resolve, are portrayed with extraordinary skill. The different strands of his character are "intertwined in an inextricable knot." His is a living soul, complicated and varying in its moods, but ever pursued by a sense of sin. By one of Hawthorne's swift, uncanny flashes of insight, as Dimmesdale goes home after the forest-meeting, we hear nothing of the wild beatings of hope and dreary revulsions to despair, but only of foul, grotesque temptations that assail him, just as earlier—on the pillory—it is the grim humour and not the frightful shame of the situation that strikes him, when by an odd trick of his imagination he suddenly pictures a "whole tribe of decorous personages starting into view with the disorder of a nightmare in their aspects," to look upon their minister.

Hawthorne's delineation of character and motive is as scrupulously accurate and scientific as Godwin's, but there is none of Godwin's inhumanity in his attitude. His complete understanding of human weakness makes pity superfluous and undignified. He pronounces no judgment and offers no plea for mercy. His instinct is to present the story as it appeared through the eyes of those who enacted the drama or who witnessed it. Stern and inexorable as one of his own witch-judging ancestors, Hawthorne foils the lovers' plan of escape across the sea, lets the minister die as soon as he has made the revelation that gives him his one moment of victory, and in the conclusion brings Hester back to take up her long-forsaken symbol of shame. Pearl alone Hawthorne sets free, the spell which bound her human sympathies broken by the kiss she bestows on her guilty father. There are few passionate outbursts of feeling, save when Hester momentarily unlocks her heart in the forest—and even here Hawthorne's language is extraordinarily restrained:

"'What we did had a consecration of its own. We felt it so! We said so to each other. Hast thou forgotten it?' 'Hush, Hester!' said Arthur Dimmesdale, rising from the ground. 'No; I have not forgotten.'"

Or again, after Dimmesdale has confessed that he has neither strength nor courage left him to venture into the world: "'Thou shalt not go alone!' answered she, in a deep whisper. Then all was spoken."

In The House of the Seven Gables (1851), as in The Scarlet Letter, Hawthorne again presents his scenes in the light of a single, pervading idea, this time an ancestral curse, symbolised by the portrait of Colonel Pyncheon, who condemned an innocent man for witchcraft.

"To the thoughtful man there will be no tinge of superstition in what we figuratively express, by affirming that the ghost of a dead progenitor—perhaps as a portion of his own punishment—is often doomed to become the Evil Genius of his family."

Hawthorne wins his effect by presenting the idea to our minds from different points of view, until we are obsessed by the curse that broods heavily over the old house. Even the aristocratic breed of fowls, of "queer, rusty, withered aspect," are an emblem of the decay of the Pyncheon family. The people are apt to be merged into the dense shadows that lurk in the gloomy passages, but when the sun shines on them they stand out with arresting distinctness. The heroic figure of Hepzibah Pyncheon, a little ridiculous and a little forbidding of aspect, but cherishing through weary years a passionate devotion to her brother, is described with a gentle blending of humour and pathos. Clifford Pyncheon—the sybarite made for happiness and hideously cheated of his destiny—is delineated with curious insight and sympathy. It is Judge Jaffery Pyncheon, with his "sultry" smile of "elaborate benevolence"—unrelenting and crafty as his infamous ancestor—who lends to The House of Seven Gables the element of terror. Hour after hour, Hawthorne, with grim and bitter irony, mocks and taunts the dead body of the hypocritical judge until the ghostly pageantry of dead Pyncheons—including at last Judge Jaffery himself with the fatal crimson stain on his neckcloth—fades away with the oncoming of daylight.