Sir Charles’s nephew, Sir Henry Baskerville, is the new inheritor of Baskerville Hall who has spent much of his life as a businessman in Canada. Watson describes him as having “the fiery temper of the Baskervilles,” and he certainly has a strong and opinionated personality upon his introduction in London. He refuses to be daunted by the frightening note he receives, and rages at the hotel for losing his boots. Even during the first few days at Baskerville Hall, Sir Henry’s adventurous and strong spirit dominates. He joins Watson in his stakeout on Mr. Barrymore and the ensuing pursuit of the convict. However, the moor, with its frightening atmosphere, creates superstitions in even this indomitable man. When Watson and Sir Henry go after the convict, Sir Henry comments that although he could easily dismiss the tales of the hound in London, on the moor it is far more difficult. After his near escape from the hound, Sir Henry is forced to leave Baskerville Hall for two years to regain his nerves.

Another essential aspect of Sir Henry’s character is his connection to his Baskerville heritage. A major reason why he refuses to listen to warnings about the curse is his desire to live in the home of his ancestors. He becomes emotional upon entering the Devon countryside and treats the hall with reverence when he first enters it. His profound sense of rootedness in Devon and at Baskerville Hall plays into the novel's themes of class and heredity. In the novel’s value system, the gentry provide a service to the surrounding lands, managing everything for the prosperity of all, which is why Sir Charles’s murder strikes such a blow to the area. Sir Henry’s passion for his family history implies that he respects tradition and responsibility that inheriting Baskerville Hall bestows upon him. He follows through on this passion by immediately tending to the immense administrative work on his first day at Baskerville Hall. While Mr. Stapleton’s willingness to murder for his inheritance echoes Sir Hugo’s greed, the novel portrays Sir Henry as the proper heir to Sir Charles, using his wealth to better his ancestral lands.