When Inga falls into a stream, she is captured by water sprites and made to swear an oath to give them her first-born baby. After her husband overhears her reliving the story in a nightmare, he dams up the stream to force the sprites to release Inga from her oath.; Dagbert, the son of a king who has fallen upon hard times, goes out to seek his fortune. He kills a dragon and bathes in its blood. He finds a hoard of gems in the dragon's cave and goes to a nearby castle to share the treasure with its king if he will send men to help transport the gems. The King and his men go with Dagbert but try to kill him when he shows them the treasure. However, bathing in the dragon's blood has made him immune to harm and he kills the traitorous crew and becomes the new King.; In the midst of a medieval war, a boy finds a refuge from the invading forces in a magic forest.; Tweedle-Dum-Dee, one of a number of tiny dwarfs living in the forest of Dumbee, is taken by a woodchopper to show to the King. The King makes a captive of the little man. The King's son falls in love with the woodchopper's daughter and she convinces him to set the dwarf free.; A young boy goes walking in the woods at twilight with his Uncle Ben, who tells him of the fairies and brownies who live in the trees.; A little girl is told that the stars are the lights that fairies carry to guide themselves home.