Gimpel is an orphaned bakery apprentice living in the village of Frampol. Though he is physically large and capable of defending himself, he consistently chooses to believe the outrageous lies told to him by his fellow villagers, earning him a reputation as a gullible simpleton. He values peace above all else, deciding that enduring mockery is preferable to engaging in conflict. He supports his household through steady, reliable work at the bakery.

Elka is a strong-willed, independent woman residing in Frampol. She has a reputation in the village for promiscuity and brings an illegitimate son into her marriage, whom she initially claims is her little brother. She is demanding and keeps Gimpel at a physical distance early in their relationship while continuing her own lifestyle. She relies heavily on Gimpel's steady income while treating him with open disdain.

The residents of Frampol operate as a collective force of mockery and social pressure. They take immense pleasure in tormenting Gimpel with elaborate lies, such as convincing him that the Czar is visiting or that the moon has fallen. They demand conformity to their social expectations and continuously try to break Gimpel's optimistic spirit through relentless harassment.

The Spirit of Evil functions as a manifestation of anger, vengeance, and dark temptation. It preys on Gimpel during his moments of vulnerability, actively urging him to abandon his lifelong commitment to faith and pacifism. It represents the psychological and spiritual urge to retaliate against the cruelty of the world.

The Rabbi serves as the religious authority and community leader of Frampol. He interprets Orthodox Jewish law for the townspeople and ensures the village adheres to traditional practices. While he shows Gimpel early compassion by declaring that it is better to be a fool than to be evil, he remains strictly bound by religious texts. His strict adherence to the law often complicates Gimpel's desire to live a purely forgiving life.

The children are raised in Gimpel's household under his financial provision. Though they are the biological products of Elka's other relationships, they receive Gimpel's unyielding affection and the material comforts he provides through his bakery work. They represent a non-traditional family unit within the strict Orthodox community.