Omri, a young boy, receives a small cupboard from his brother for his birthday. He soon discovers that when he locks plastic figurines inside it with a special key and opens the door, they come to life. When his friend Patrick gives him a toy Indian figure named Little Bear, Omri places it in the cupboard, and to his amazement, it transforms into a living miniature Iroquois warrior. Omri and Little Bear slowly build a friendship as they learn about each other's worlds, with Omri discovering the responsibility that comes with the cupboard's magic.

Interested in exploring more possibilities, Omri introduces other figurines to bring to life, including a cowboy named Boone. As Omri balances his desire to play and the need to care about the beings he brings into existence, a series of moral and ethical dilemmas arise. Problems escalate when his secret is found out by Patrick, leading to bigger challenges and tests of loyalty and friendship. This magical experience ultimately teaches Omri valuable lessons about respect, history, and the human condition, compelling him to make significant decisions that affect everyone involved.