In a small inn, the impoverished Baron von Münchhausen tries to keep his head above water with the help of his stories.

Heidi, is an eight-year-old Swiss orphan who is given by her aunt to her mountain-dwelling grandfather. She is then stolen back by her aunt from her grandfather to live in the wealthy Sesemann household in Frankfurt, Germany as a companion to Klara, a sheltered, disabled girl in a wheelchair. Heidi is unhappy but makes the best of the situation, always longing for her grandfather.