In the early 19th century, brothers Wilhelm and Jacob Grimm, both scholars, find themselves commissioned to document the history of a local ducal family. While Jacob is focused on the historical task at hand, Wilhelm is more interested in collecting folktales, which often sidetracks him from their official duties. This difference in priorities creates tension between the pragmatic Jacob and the dreamer Wilhelm. Eventually, Wilhelm's fascination leads them to travel through various regions where they encounter a rich tapestry of characters telling stories full of imagination and moral lessons. These encounters are depicted as whimsical vignettes, merging reality with fantastical elements, showcasing tales like "The Dancing Princess" and "The Cobbler and the Elves."

As the story unfolds, the brothers face challenges that threaten their work and their relationship. The Duke grows impatient with Wilhelm's lack of progress on the family chronicle, while financial struggles loom over the pair. Despite the increasing pressure, Wilhelm's passion for stories begins to inspire even Jacob, as he starts seeing the importance of preserving these cultural treasures. Their struggles highlight themes of creativity versus duty, the power of storytelling, and brotherly bonds. The narrative intertwines with the fairytales they collect, offering enchanting visuals and moral insights, while gradually building towards a resolution that balances both their commitments to history and folklore.