This film is set in a medieval mill town in the Harz mountains. The greedy and brutal millman and his accomplices, the castle steward and the mayor, set fire to a forest mill that the farmers used for processing their grain. Without their mill, the farmers must now rely on the millman's services. When the farmhand Anna uncovers the millman’s crimes, he swiftly detains her and a young miller, Jörg. The forest spirits have a different plan, however, and they free the young couple with the charge to rebuild the ruined forest mill and turn things around for the villagers.

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