Orm Ivan Okhlobystin, an anteater-like troll, has spent a year after the Snow Queen’s defeat thawing out the rest of his kin and settling into life with his grandmother Rosa and Gerda’s pet ferret, Luta. He works as a miner in the troll village, trying to keep things steady, but a fateful oath he makes at Lake Gao—to never tell another lie—unleashes a dangerous consequence: his reflection suddenly comes to life and starts prodding him toward deception, pulling the strings behind the scenes and nudging him toward social missteps, including lying.
When Orm is fired for insulting the knight Arrog and faces eviction from his cottage, his blue-tinted twin begins to manipulate him further, pressuring him into donning armor to enter a competition that determines who will win Princess Maribel’s hand. To impress the Princess and her uncle, the King, Orm fabricates a tale of having defeated the Snow Queen, hoping to secure glory and a better future. Yet Gerda—who arrives in the village with her brother Kai and their friend Alfida—overhears Orm’s lies. A heated argument ensues, and Gerda leaves, feeling betrayed by the one she had hoped would be honest and loyal.
As Orm and Rosa move toward the King’s palace, a strange unease grows in the royal circles. The King senses something familiar in Rosa herself, asking whether she has changed at all over the years. Then the North Wind appears and abducts Princess Maribel, triggering a royal decree: whoever can rescue the Princess will win her hand in marriage. Orm joins Arrog and the other warriors on a perilous quest to save her, but the mission splinters when Orm, though reluctant, retreats from the group and heads to Gerda’s village. There he discovers that Gerda’s mirror has been stolen, complicating their chances. He sends her a message to meet him at the Black Cliffs, and along the way, Gerda, Kai and Alfida encounter the trolls who reveal that Orm has abandoned the expedition. Disillusioned, Gerda sets sail with the others and leaves Orm behind at the cliffs.
Grief-stricken, Orm finds himself pulled into the real world by his once-blue reflection, which has now grown frosty and powerful. The two clash as Orm inadvertently freezes the ocean and traps Gerda and the others. In the ensuing confrontation, the Snow King—who has emerged from Orm’s lies—explains that as the Snow King grows stronger, Orm weakens and becomes nearly invisible. The Snow King unleashes an army that overwhelms Orm’s friends, freezing them in ice. Orm attempts to warn Gerda, but she cannot see, hear, or touch him; the Snow King deceives her into believing he is the real Orm, freezing her and Luta and trapping Orm in the mirror realm. It is only when Orm fully grasps that the Snow King has sprung from his own lies that he musters the courage to confess aloud and shatter the ice around his friends. His admission thaws Gerda and the others, and the Snow King reverts to a mere reflection.
In the aftermath, Orm is carried back to the troll village, where he is celebrated rather than punished for his honesty and bravery. Rosa ends up marrying the King, and Orm regains his cottage and reaffirms his friendship with Gerda. Meanwhile, Arrog marries the Princess, and their family life is hinted at in the end credits, offering a sense of hopeful closure for everyone involved. The tale blends themes of honesty, loyalty, and the consequences of lies, all set against a fantastical backdrop of trolls, royalty, and magical enemies.