An evil witch is trying to steal a magic purse possessed by the local ruler. Thanks to Princess Blanka's love, Prince Petr wins out over the witch.

The witch Irrfriede has slept for 27 years, now she is wide awake to hatch sinister plans. Irrfriede sees through her crystal ball how King John opens his magic bag, whose inexhaustible blessing of money secures the finances of the empire and the subjects do not have to pay any taxes. Irrfriede must have this bag. The witch rides into the castle on her broomstick, and stealing the bag is child's play. But the sorceress rejoiced too soon. The pouch only works with a spell engraved on a ring that the king carries with him at all times. Irrfriede transforms into a beautiful woman and returns to the castle, where she quickly gains the king's trust. The theft of the bag has since been noticed, and Johannes offers a high price for its replacement: his daughter, Princess Blanka. The two tramps Handy and Smart offer their services to the king, but leave only chaos in their clumsy search for the bag. To make matters worse, the castle is haunted. The lord of the flames is keeping the goblin Melusine captive in the branching chimneys of the castle. The young Prince Peter from the neighboring kingdom disguises himself as a chimney sweep and defeats the lord of the flames after a sacrificial fight. From the freed Melusine, Prince Peter learns that the witch Irrfriede has stolen the bag and is now after the king's ring.—ARD Das Erste

Crown prince Peter drives the old regent to despair by refusing to abandon his scientific research to take the throne. However he venture incognito to he neighboring kingdom after hearing evil prince Velemir, whom the regent helped, abandoned his bid for the hand of mildly senile king Johanns's headstrong only child Blanka after the magical pouch, which allows making gold coins so no taxes must be levied, has been stolen, spelling misery for the otherwise poor realm. The thief is witch Irrfriede, who awoke after a 27 years spell, who transformed into an aristocrat to enter the palace with her simpleton dogsbody Huhla and keeps looking for the spell, which the king wrote down, and his golden ring, as the pouch won't work without those. Peter got i apply as new chimney-sweep, but finds that a fiery challenge too, as the chimneys are haunted by the aggressive demon 'lord of the flames', who keeps fairy Melusine captive, whom he frees as magical ally, while winning Blanka's heart.—KGF Vissers