The story follows a young scientist in the contemporary world, who actually came from the world of dwarves, thanks to a magic potion, held by the Big Eater, ruler of the dwarves. The dwarf kingdom, Shuflandia, exists in a cellar of a library, and only the most obedient get the chance to grow to king size and inhabit the larger world. Once there, nobody wants to return to Shuflandia. Also, there are no women in Shuflandia.

The film evokes a childhood in rural Lithuania between the wars. A country boy, Tomaszek, lives on a rich estate, situated on the Polish border. He realizes that the Issa Valley he lives in is to be torn apart by internal political conflicts and unrests among the mixed population of Poles, Lithuanians, Jews and Russians. He, however, is captivated by a paradise surrounding him, the forest, and his fantasies.

The story begins in March of 1968, the days of students protests. A hot- headed student protests the Dean's decision to expell a fellow student on fake accusation charges, upon which he drops out of university rather than make a compromise. He loses everything in the process: his girlfriend, housing privileges - he becomes a coal deliverer. On the job he witnesses an accident that causes death of a fellow worker. He decides to write a story, which is good and a publishing house wants to print it, but only after some corrections are made. He refuses again and the story is not printed. Finally, a story is commercialized and made into a succesful film and brings fame to the original author.

A young museum worker sets out to find a treasure hidden in a small town.

The marital argument is interrupted by a phone call with a desperate cry for help.