Young children have adventures in a fantasy world.

Granhyttan in Sweden used to have rich mines. One day a suspicious couple, Signe and Orvar, arrives in the small town and retires in a purged hut. Nobody knows what they up to; but strange things starts to happen when a young boy, Staffan, finds a piece of shining metal, while playing in a mine.

Erik falls in love with Greta and travels to Stockholm to visit her, but trouble finds him.