Knowitall, a wise and famous elf, sets out on a long journey. Until he reaches his country's borders, he is accompanied by his two little friends, Earson and Lighterson. On his way, Knowitall narrates a tale and his two little friends forget themselves and enter Fairytale Land by mistake. Earson and Lighterson fall on the guards' hands, the terrible Paraorites, they are terrified and as the flee they are separated from Knowitall. Frightened and exhausted they reach a peculiar place called Theatre, on the boarders of Fairytale Land and Human Land. Here, Knowitall is supposed to meet a Fairytaler, to help him narrate a tale to children. The Fairytaler runs late, and the two little elves persuade Knowitall to tell them a tale. This is however strictly prohibited, and when Paraorites appear and the two little elves run away, Knowitall turns to stone. To be saved a noble Fairytaler must be found, who can find Laughing, and narrate a fairytale to her that she will enjoy and then persuade her to offer Knowitall a kiss, that will free him. When instead of the Fairytaler his assistant appears, things take a hazardous turn. What can an inexperienced Assistant do? Will he accept to take such a dangerous trip, with dragons and witches, ghosts and spooks? Will he be able to find Laughing?