Loki, a mischievous Huldufolk elf, plays tricks on those who live in the woodlands.
He thinks he can gain attention, acceptance and respect by gaining power over others. He focuses his tricks on two children who live in the woodlands. He enjoys making them scared. He hides the key they need to enter the house after school.
As they run to the neighbours, the wind storm blows down a huge branch that lands on them. Devon is hurt and Callie tries to bandage his wound.
A magical fairy comes to their rescue and transforms them into tiny creatures. She brings them to her home for healing. They meet her elf partner, her family and her friends.
They all have an important message for the children to learn. Most importantly, the children learn about the magic within themselves and the love that makes it happen.