In tenth-century Bavaria, Prince William of Hauptman-Koenig attempts to elope with a peasant girl named Jessie. The queen and her sorcerer, Gunther Spretzle, thwart William’s plan by giving Jessie a gold necklace that turns her into a mannequin. The spell will be broken after 1,000 years, or when Jessie “meets her true love from another land.” Prince William responds by cursing Hauptman-Koenig with perpetual rain. Nearly 1,000 years later, Jessie is displayed at the national museum as “The Enchanted Peasant Girl,” although her story is dismissed as a folk legend. The sorcerer, now known as Count Spretzle, has survived the centuries, anticipating Jessie’s return to life so they can be married. Count Spretzle travels with Jessie and the crown jewels on a tour of the United States. Meanwhile, in Philadelphia, Pennsylvania, Jason Williams, a direct descendent of Prince William, begins his first day at the Prince and Company department store, where he is tasked to assist the flamboyant “manager of visual merchandising,” Hollywood Montrose, in creating a presentation for the Hauptman-Koenig exhibit. Moments after they meet, Hollywood and Jason are notified that the van carrying the exhibit is teetering on a bridge above the Schuykill River. They arrive as Jessie falls into the river, and Jason jumps in to rescue her, along with Spretzle’s muscular assistants, Rolf, Egon, and Arnold. Although Jason is embarrassed to learn that he risked his life for a mannequin, he is entranced by her beauty. Upon returning to the store, Jason places Jessie in a storage room, and when he removes her necklace to examine it, she returns to life. Jessie is shocked to learn she has been frozen for nearly ten centuries, but she is happy to be reunited with Jason, whom she believes is the reincarnation of Prince William. They spend the evening together, during which Jessie discovers automobile travel, cheesesteak sandwiches, and disco dancing. Meanwhile, Hollywood and the store manager, Mr. James, meet Count Spretzle, who claims the exhibit is intended to attract tourism to his beleaguered country. In reality, he and his three minions plan to steal the crown jewels and escape to Bermuda with Jessie. Later that evening, Jason brings Jessie to his mother’s home, and sleeps on the couch while she stays in his bedroom. In the morning, Jessie unwittingly dons her necklace and becomes inanimate. Jason’s mother finds her son trying to revive Jessie, and accuses him of having “a fetish for a dummy.” Later, Jason presents Jessie as a mannequin to Count Spretzle, who is outraged at seeing her dressed in modern clothes. The count glares suspiciously at Jason, certain they have met before. When he is alone in the storage room, Hollywood borrows Jessie’s necklace, turning himself into a mannequin and restoring her to life. Rolf, Egon, and Arnold remove the necklace from Hollywood and notify Count Spretzle that Jessie has escaped. When Jason learns that Jessie is alive, he searches the store for her. Count Spretzle recognizes Jason as his nemesis, Prince William, and attempts to kill him with a crossbow, but Jessie comes to her lover’s rescue in an electric go-cart. After they return home, police arrest Jason for stealing Jessie, while Count Spretzle transforms her back into a mannequin. In the morning, Hollywood disguises himself as a soldier and orders Jason’s release from jail, claiming the young man is a military deserter. They return to Prince & Company for the televised presentation of the Hauptmann-Koenig artifacts, with Jason posing as a cameraman to avoid detection. Count Spretzle takes offense at the gaudy presentation and attempts to leave with Jessie. However, Jason challenges him to a duel, aided by Hollywood, who uses stage effects to hinder the count. The audience applauds as Jason removes the necklace, restoring Jessie to life. Count Spretzle draws a pistol and takes Jessie to the roof, where he expects a waiting helicopter. However, the count’s minions surprise him with a hot-air balloon, believing it to be more “romantic.” As the balloon begins its ascent, Jason grabs onto the mooring line and pulls himself into the basket. During the ensuing struggle, Jessie places the necklace on Count Spretzle, rendering him inanimate for 1,000 years. He falls from the balloon and shatters on the street. After being crudely reassembled by Rolf, Egon, and Arnold, the count is put on display at the Hauptmann-Koenig museum. In time, Jessie and Jason marry, with Hollywood’s pink convertible serving as their bridal limousine.