One year after the Snow Queen Nadia Lanfranconi was defeated by Gerda Iren Levy, Orm—the anteater-like troll—lives with his grandmother Rosa and Gerda's pet white ferret Luta in the troll village, where he works as a miner. He swears an oath at Lake Gao to never tell a lie, and the moment he breaks that vow, his reflection comes to life and begins nudging him toward deception, turning quiet days into a growing tension between truth and illusion.
When Orm is fired for insulting the knight Arrog and faces eviction from his cottage, his living lie-figure pushes him to don armor and join a contest to decide who will marry Princess Maribel. To impress the Princess and her uncle, the King, Orm exaggerates about defeating the Snow Queen. But Gerda, who has arrived at the village with her brother Kai and friend Alfida, overhears the lies and a sharp quarrel ensues, driving Gerda away and setting the stage for a fracture in their friendship.
As Orm and Rosa move toward the King’s palace, the King confesses that he feels as if he has seen Rosa before, a moment that stirs memories of the past. Then the North Wind appears and abducts Princess Maribel, prompting a royal decree: whoever rescues her will win her hand in marriage. Orm, along with Arrog and the other warriors, sets out, but he eventually abandons the expedition and heads to Gerda’s village, only to discover that her mirror has vanished in a theft of unknown origin. He then sends Gerda a message asking her to meet him at the ominous Black Cliffs.
En route, Gerda, Kai and Alfida encounter the trolls and learn that Orm had left the company behind. Disheartened, Gerda sails away with the others, leaving Orm alone at the cliffs and increasingly isolated from those who trust him.
A distraught Orm is manipulated by his blue, frosty reflection into stepping into the real world, where he freezes the ocean and traps Gerda and the others. In a ferocious confrontation, the reflection—who calls himself the Snow King—explains that the more power he gains, the weaker Orm becomes and the more invisible he will be. The Snow King unleashes his army, overwhelming Orm’s friends and encasing them in ice. Orm tries to warn Gerda, but she cannot see, hear, or touch him, and the Snow King deceives her into thinking he is the real Orm, freezing Gerda and Luta and trapping Orm in the mirror realm.
Trapped, Orm realizes the Snow King was born from his lies. He finds the courage to confess aloud, which shatters the Snow King's hold, thawing Gerda and the other victims, and restoring the mirror to a simple, harmless reflection. With the threat gone, Orm is returned to the troll village, where he is not punished but celebrated as a hero. Rosa weds the King, and Orm rekindles his friendship with Gerda, while Arrog marries the Princess and their future children appear in the ending credits.
