Tiny Princess Sophie is stolen away from her castle home on Misty Island by a dirty little goblin who lives on black magic and chocolate. When the moon boat they are in begins to fill with water, the goblin escapes into the sea, leaving Sophie to sink. Saved by a friendly whale, she is deposited on a strange shore, where a young elf finds her, and leads her to his forest home. Sophie, now named Moonbeam by the forest folk, soon forgets her past life, and lives happily for several years with the elves and talking animals. Even the ancient forest wizard cannot help her to remember what the letters mean on the gold necklace she has always worn. How Moonbeam, with the help of a heroic white moose and a chatty blue heron, manages to make her way home, vanquish the wicked goblin and rescue her royal parents makes for an exciting adventure, with a happy ending.