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Cate Blanchett is a widow with three kids - and psychic powers. While giving readings to people in the neighborhood, she learns their dirty laundry in the process.
Meanwhile, Cate is secretly attracted to the principal of her son's school (Greg Kinnear) - it's too bad he's engaged.
When Kinnear's fiance (Katie Holmes) disappears, naturally Blanchett is asked to help find her. (She already knows Holmes was cheating on Kinnear, and that didn't take any psychic powers - she saw Holmes with the other guy.)
Meanwhile, other people in the town tie into the murder story. Although Blanchett knows her friends' secrets, she doesn't know what happened to Holmes - at least not until she starts having strange dreams. (At one point, she sees Holmes' dead body floating in a tree.) Later, she leads the cops to the dead body.
The Gift isn't entirely original, but it does have a different take on psychic stories. Certainly the plot was well woven - there were so many murder suspects, it was hard to figure out who killed Holmes. Basically, The Gift is a middle of the road horror/drama movie, with well-written characters and a good cast.