When a prophecy declares that a girl born with a mark on her arm will overthrow Queen Bavmorda, all pregnant women are imprisoned. After a girl is born with the foretold mark, her mother convinces the midwife, Ethna, to run away with the child. Bavmorda orders demonic dogs her daughter, Sorsha, to track the midwife and return with the child so she can be killed. As the dogs advance, Ethna places the baby onto a bed of sticks in a stream. The child drifts near the farm of Willow Ufgood, a Nelwyn. Willow recognizes the baby as Daikini, a larger being than Nelwyns. The following day, Willow attends the village festival, hoping to become apprentice to the High Aldwin, a Nelwyn wizard. However, Willow is not chosen. During the festival, the demonic dogs attack, but village guards kill the beasts. At the council meeting, Willow presents the found Daikini child. Burglekutt, the village prefect, assumes the dogs were sent after the child and demands that Willow get rid of her. However, the High Aldwin realizes the baby is special and orders Willow to journey to the crossroads of the Daikini and Nelwyn realms and safely deliver her to the Daikini. Before he leaves with his friend, Meegosh, three village guards, and Burglekutt, the High Aldwin tells Willow he has the potential to be a powerful wizard. At the crossroads, the group comes upon a Daikini named Madmartigan, who is locked in a cage. After Madmartigan promises to protect the child, as he is a great swordsman, Burglekutt orders Willow to leave the baby. However, Willow refuses. Frustrated, Burglekutt and the guards leave Willow and Meegosh. Meanwhile, Bavmorda orders Sorsha to assist General Kael in the search for the child. Later, a Daikini patrol approaches the crossroad and a soldier named Airk recognizes Madmartigan. After announcing that Bavmorda’s army is destroying the land, Madmartigan insists he will fight with Airk if he is freed. However, Airk refuses, knowing Madmartigan to be selfish. Worried about their village, Willow and Meegosh free Madmartigan and entrust him with the child. Later, they are attacked by a group of Brownies. Afterward, Willow and Meegosh find the baby with Cherlindrea, the queen of the fairies. She declares the child is Elora Danan, destined to put an end to Queen Bavmorda’s evil reign. Naming Willow as Elora’s guardian and giving him her magic wand, Cherlindrea instructs him to free exiled sorceress Fin Raziel, then journey to the castle of Tir Asleen. As Meegosh heads back to the village, two Brownies, Franjean and Rool, guide Willow and Elora to Raziel’s island. Later, Willow arrives at a tavern and comes upon Madmartigan. Willow yells at Madmartigan for abandoning Elora, as Shorsha and her soldiers appear. Shorsha attempts to take Elora, but Madmartigan helps Willow and the Brownies escape. Later, the group arrives at the lake surrounding Raziel’s island. Willow rows out and finds Fin Raziel transformed into a muskrat by Bavromda’s spell. Leaving the island, Willow and Raziel are captured by Sorsha, along with Madmartigan. Sorsha travels to General Kael’s encampment with her prisoners. Later, Willow attempts to release Raziel from Bavromda’s spell, but turns her into a crow. Franjean and Rool appear to rescue Willow and Madmartigan, but accidentally cast a love spell on Madmartigan. As Willow looks for Elora, Madmartigan sees Sorsha and kisses her. Afterward, Madmartigan and Willow escape with the baby to a nearby village, guarded by Airk. Sorsha follows, and is taken hostage by Madmartigan. When she asks him about their kiss, the effects of the spell fade, and he does not remember. Raziel guides them to the castle at Tir Asleen, but Sorsha escapes along the way. Willow and Madmartigan find Tir Asleen cursed by Bavmorda and overrun by trolls. Willow and Madmartigan prepare for an attack by Bavromda’s army. As Sorsha battles Madmartigan, she is impressed by his bravery and kisses him. However, Kael kidnaps Elora Danan and takes her to Bavromda. With help from Airk, Willow and the others arrive at Bavromda’s castle. However, Bavromda casts a spell, changing Madmartigan, Sorsha and the soldiers into pigs. Unaffected, Willow uses his wand and restores Fin Raziel to human form. After Raziel undoes the pig spell and returns the soldiers to Daikini form, they devise a plan to rescue Elora Danan. As Madmartigan and the soldiers battle Kael and his army, Willow, Sorsha and Raziel enter the castle. After Bavromda defeats Sorsha and Raziel, Willow hides Elora, leading Bavromda to think the girl has vanished. As Bavromda raises the wand, she is struck by lighting and destroyed. Afterward, Willow entrusts Sorsha and Madmartigan with the protection of Elora Danan. As he prepares to leave, Raziel presents Willow with a spell book. Willow is welcomed back by the villagers as a real wizard.