After receiving her stepmother’s tongue lashing for being late to babysit her infant brother Toby, teenager Sarah angrily retreats to her room, which is decorated with toy fantasy creatures and literature. Her father tells her that he and her stepmother will return by midnight. Sarah notices that her stuffed bear, Lancelot, is missing and angrily goes to baby Toby’s room to retrieve it. As Toby cries in his crib, Sarah tells him a story in which a king of the goblins fell in love with a young girl and gave her special powers. The girl wanted goblins to abduct her baby brother, freeing her to go about her life, but when she realized that the king of the goblins would keep the baby forever and turn it into a goblin, she suffered in silence. Toby’s crying upsets Sarah, who commands the goblins to kidnap the boy. After uttering the proper incantation, Sarah places the still-crying Toby in his crib and returns to her room. Suddenly, Toby stops crying, and Sarah finds that the baby has vanished. A white owl pushes open the bedroom window and flies past Sarah. The owl transforms into Jareth, the goblin king, and tells Sarah she cannot reverse her command. Jareth offers Sarah a small crystal ball that will let her see her dreams. When she refuses the gift, he transforms the crystal into a small snake and throws it at her. As she struggles to remove the reptile, it turns into a colorful scarf. As it falls to the floor, a goblin appears. When Sarah insists on Toby’s return, Jareth points to his castle and says Toby is being held captive inside. Jareth warns her that she has thirteen hours to rescue her brother. If she fails, Toby will remain in the goblin world forever. Sarah announces that she is game to make the journey and navigate the complex labyrinth that surrounds Jareth’s castle. She asks a goblin named Hoggle for his help. Although Hoggle is more interested in killing fairies with his pesticide sprayer, he shows her the door into the labyrinth. Hoggle is pessimistic about Sarah’s chances of survival, but offers no shortcuts. Sarah bravely walks down a never-ending alleyway. A small worm tells her that she is not looking in the right places for an opening to the labyrinth. Sarah does not see anything as she gazes at the opposite wall. The worm directs her into the maze but away from the castle, not realizing it is her destination. Off in the distance, Sarah hears Toby’s crying. In the castle, Jareth and the goblins sing and party with Toby in their midst. Sarah marks stones with chalk to create a path along the way, but creatures turn the stones over, removing her path from view. She realizes that her path is being altered and the shape of the labyrinth keeps changing. In despair, she asks four guards for help. They tell her that one of the doors they guard will lead her to the castle at the center of the maze, while the other will bring about her certain death. When Sarah quizzes two guards, she does the opposite of what the lying guard advises, and walks through the right door but falls down a hole surrounded by helping hands. When the hands ask her which direction she wants to go, she chooses “down.” Through his crystal, Jareth discovers that Sarah has landed in the “oubliette,” a dungeon of sorts in which people are sent to be forgotten. He is surprised that she is not discouraged, but he believes that she will become so when goblins lead her back to the beginning of the labyrinth. However, Sarah barters a plastic bracelet in return for Hoggle’s shortcut to the castle. While they walk, great stone faces remark that the two are going the wrong way. Jareth accuses Hoggle of being too helpful to Sarah and threatens him. Hoggle denies any wrongdoing and pleads for his life. Sarah makes the mistake of telling Jareth the labyrinth will be easy to solve. He punishes her by moving the clock ahead and sending “the cleaners,” a stainless steel, multi-brush machine, after them. Sarah and Hoggle run and break through into a new passageway as the cleaners collide with a locked gate. In the new passageway, Hoggle insists they climb a ladder, which leads to an outdoor courtyard. Sarah is not happy when Hoggle announces he is through helping her. She steals the jewelry he keeps tethered to his belt, and insists he continue as her guide. They hear a roar and Hoggle runs away. Sarah sees several guards torturing a massive, hairy creature named Ludo, who is hanging upside-down from a tree. She scares away the guards and rescues Ludo, but he does not know the way to the castle. Sarah discovers two talking doorknockers. She knocks on one door, and it leads Sarah and Ludo into a forest. Ludo falls down a hole, but Sarah does not realize the earth has swallowed him up. As she calls Ludo’s name, Hoggle hears Sarah, but Jareth stops Hoggle before he can come to her aid. Again, Jareth warns Hoggle not to help, and tosses Hoggle the crystal ball to give to Sarah. It transforms into a peach. Hoggle assures Jareth that he is going to lead Sarah back to the start of the labyrinth. Jareth also warns Hoggle that if Sarah kisses him, Jareth will turn him into the prince of the Bog of Eternal Stench. As Sarah searches for Ludo, a group of birdlike creatures called Fireys distract her until she pulls their heads off and runs away. Hoggle throws her a rope and she climbs to safety. In gratitude, she kisses him although Hoggle pleads with her to restrain herself. They fall through a trap door and narrowly miss falling into the stinky Bog, and reunite with Ludo. They make their way to a bridge but are prevented from crossing by a foxlike guard named Didymus until they win his confidence. The bridge collapses as Sarah crosses and she hangs from a tree branch. Ludo roars and boulders rise to the bog’s surface and become stepping stones for her and the others. Hoggle attempts to throw the disguised crystal ball in the bog, but Jareth’s voice warns him to complete his task. When Sarah is hungry, Hoggle gives her the fruit. She takes a bite of the peach and immediately feels strange. Jareth releases more crystal balls that float like bubbles in the forest, where Sarah lies drugged. In one crystal ball, Sarah is elegantly gowned in a ballroom surrounded by goblins and dancers. Across the room, Jareth waits for Sarah to find him. Sarah dances with Jareth but breaks away when she notices the time. She shatters the glass ballroom wall, and lands in a junkyard. Sarah disturbs a junk lady but cannot remember what she was searching for. The junk lady hands Lancelot, the stuffed bear, to Sarah, claiming the stuffed toy is what Sarah was looking for. She goes into the junk lady’s cave and finds herself back in her own bedroom. She believes she has been dreaming, but the junk lady returns and hands her more familiar toys. Sarah discovers the Labyrinth book on her vanity table and remembers that she has to save Toby. She escapes back into the forest, and reunites with her friends. They enter the gate to Goblin City by slipping past a sleeping guard but are soon attacked by a giant goblin in a suit of armor. Hoggle wrestles the controls of the giant goblin machine away from its smaller goblin operator and stops the attack. Sarah is so grateful to Hoggle that she returns his jewelry. Meanwhile, a guard warns Jareth that Sarah and her friends are in the castle. Jareth orders all his guards to stop her. Goblin soldiers battle while Sarah and her friends run to safety. The friends take cover in a tower and defend themselves against the soldiers. However, Ludo roars, summoning boulders to destroy the goblin king’s men. Sarah and her friends search for Toby. With only a few minutes left, Sarah climbs stairs that lead nowhere. She can see Toby but cannot reach him. When she discovers Toby sitting on a precarious ledge below her, she closes her eyes and leaps. When she lands, Jareth confronts her and claims she has not appreciated his generosity. She recites from the Labyrinth book, but Jareth interrupts, shows her a crystal and offers dreams that can be hers. All he wants is to rule his kingdom, and she can have anything she wants. However, when Sarah realizes that he has no power over her, Jareth transforms into a white owl, while the clock in her home chimes. Transported home, Sarah runs upstairs to Toby’s room, finds him asleep in his crib, and tucks Lancelot under his arm. As Sarah cleans out the vanity in her room, she notices Hoggle, and confesses that she needs all her friends. She swivels around and all her creature friends appear in her room, where there is much rejoicing and dancing.