In order to test his wife's fidelity, millionaire John Hamilton disappears after stipulating in his will that his money will go to his two children, Roland and Rose. Through the butler, Hamilton learns that his wife and brother Mason are contemplating killing the children in order to inherit the Hamilton millions. To protect his little son and daughter, Hamilton returns and tells them the story of Hansel and Gretel as a warning. Hansel and Gretel, taken to the woods to be killed, are rescued by The Good Fairy. Later, out of hunger, they find the gingerbread house belonging to the witch. They are captured, but Gretel pushes the old witch into the oven and the two escape. The Bad Prince, who has been after the two children, catches them at last, but they are again saved by The Good Fairy. Meanwhile, Mrs. Hamilton, who has overheard the story, is so touched that she realizes the evil she was planning and the family is reunited.