The tone of “The Happy Prince” flips between sincerity and comedy, with the story’s central tragedy balanced by its instances of humor.
The detached and matter of fact nature of the narrator, whose identity is ambiguous, allows these contrasting elements of tragedy and comedy to sit side by side, with most emotions primarily conveyed through the characters’ speech. The narrative prefers to show rather than tell the reader what to think. Indeed, the narrative, which gives a bird's-eye view of the city and mostly refrains from additional commentary, gives readers the impression of an impartial, omniscient narrator who cannot participate in the action of the story.
However, as the story progresses, this impression is proven to be a facade, with the narrative giving hints of a more personal narrator. Commentary such as the description of the Swallow “who really had a good heart"—and even a slipping in of the narrative “I” when the narrator comments, "[W]hen I last heart of [the Town Councillors] they were quarrelling still”—undercuts the narrator’s supposed impartiality. Such intrusions highlight the narrator’s personal voice and hint at Wilde’s characteristic ironical presence throughout the story.
Having said this, the very final part of "The Happy Prince" significantly elevates the tone, since the voice of God intervenes at the end of the story. God's voice takes on the authority of the narrator and ends the story with a final note of grandeur.