Peter Munk, a poor charcoal burner, lives with his mother in The Black Forest. Poverty prevents him from marrying Lisbeth, the girl he loves. When he comes across the Little Glass Man, the good spirit of the forest, the young man asks him for assistance. His wish is granted and he becomes rich. But the fool soon loses all his money after gambling at the inn. In desperation, he asks Dutch Michael, the evil spirit of the forest, to help him to become rich again. The mean giant agrees and gives Peter all the riches in the world, but on one condition the young man will exchange his heart for a cold stone. He can now marry Lisbeth but can a heart of ice make you and the others happy...