Hansel and Gretel wander lost through a dense forest, where a grotesque, almost humanlike creature unsettles them. Their fear gives way to curiosity when a small, persistent dwarf-like figure named Bubi Otto Waalkes arrives and confronts the creature, demanding its name. The beast responds with a chilling self-introduction as “The Evil One,” and, unseen by the children, Bubi quietly trails the creature, watching him circle a crackling fire and sing a strange tune that unintentionally reveals his true identity.
The narrative shifts to a fairytale-modern crossover at Snow White’s castle, where Snow White is now a mother. Cosma Shiva Hagen plays Snow White, whose husband—the jester—has vanished a year earlier, leaving her to wonder what happened to him and their child. The Evil One breaches the castle’s safety and asserts his claim on the child, sowing fear and confusion. Earlier, Spliss, one of Snow White’s guards, had managed to pull the Evil One from a trap and, in gratitude, was granted a wish. He asked for a blond haircut, a change he soon regretted, as a contract bound Snow White’s child to the Evil One’s destiny. Snow White pleads for the contract’s reversal, while the Evil One vows to relinquish his claim only if someone can uncover his real name within 48 hours.
Snow White’s memory becomes a growing liability, and she travels to the dwarves’ cabin seeking help. Only Bubi remains from the old group, and he explains that Snow White’s past decisions set off a chain of events that fractured the dwarf clan. To rally support, Snow White enlists the aid of the other six dwarves who now operate in a nearby town: Cookie [Gustav Peter Wöhler], Cloudy [Boris Aljinovic], Sunny [Ralf Schmitz], Speedy [Martin Schneider], Ralfie [Norbert Heisterkamp], and Tschakko [Mirco Nontschew]. They band together with Bubi to search for the Evil One’s real name, a quest that also takes them to the Wise Grey, who has departed to a place called “The Fishing Palace” in another world. The Wise Grey proves elusive, offering only cryptic guidance, and the dwarves eventually locate a magical mirror that can transport them into a modern-day Germany—an unexpected bridge between realms.
Their path leads to the candy house of the witch, who is revealed to be Snow White’s former queen but now suffers from memory lapses. The Evil One, in a bid to protect his anonymity, writes down the real name on a paper and places it in an envelope inside the witch’s conjuring book. He also warns that someone could discover his name, and the witch, via a crystal ball, spies on the dwarves’ mission. In a bid to recover the envelope, the dwarves use a clever ruse at the candy house, only to be tricked into taking the wrong envelope. Convinced the real name is Mother Hulda after this misdirection, they race back to Snow White with their mistaken belief. It’s only when Bubi finally voices the truth that the name is revealed: Rumpelstiltskin. The revelation unlocks the central mystery that binds Snow White’s child to the Evil One, a twist the dwarves have chased across two worlds.
As the tale resolves, the dwarves cross paths with their former head dwarf Brummboss, who has become a king by the end of the first film. He asks whether he could return to being a dwarf, a request that is declined by the others since there are already seven dwarves in their guild, each with a distinct role—from the innkeepers to the firefighter, the brewer, and the exterminator. The film closes on a note that while the name behind the Evil One’s power has finally been spoken, the intertwined destinies of Snow White, her child, and the seven dwarves continue to unfold across a merging of fairy-tale and modern worlds, leaving room for new adventures that test loyalty, memory, and what it means to know someone’s true name.
