The story focuses on the Brothers Grimm, Wilhelm (Laurence Harvey) and Jacob (Karlheinz Böhm), and is biographical and fantastical at the same time. They are working to finish a history for a local Duke (Oscar Homolka), though Wilhelm is more interested in collecting fairy tales and often spends their money to hear them from locals. Tales such as "The Twelve Dancing Princesses" and "The Elves and the Shoemaker" are integrated into the main plot. One of the tales is told as an experiment to three children in a book store to see if publishing a collection of fairy tales has any merit. Another tale, "The Singing Bone", is told by an old woman (Martita Hunt) in the forest who tells stories to children, while the uninvited Wilhelm secretly listens through an open window. The culmination of this tale involves a jeweled dragon and features the most involved usage of the film's special effects.