Princess Irene amuses herself in her rooms in the castle while her father, the King, is away. During her explorations, she encounters a mysterious old lady in a high tower. Next day, while out walking with Lootie, her nurse, Princess Irene is attacked by Goblins. Curdie, the miner's son must then rescue Princess Irene from the Goblins who live under the mountain, and having discovered the Goblin King's dastardly plans, must then save the kingdom from the Goblins' terrible plan for revenge.