A teenage girl named Sarah, frustrated with her responsibilities and yearning for a more fantastical life, unwittingly wishes her baby half-brother Toby away to the Goblin King, a mystical figure ruling over a magical world. Immediately regretting her words, she's confronted by the Goblin King who informs her that the only way to retrieve her brother is to navigate his elaborate labyrinth to the castle beyond the Goblin City before time runs out. Sarah embarks on her quest, entering a bizarre and perplexing world filled with strange creatures, mind-bending puzzles, and dangerous obstacles.

As Sarah journeys through the labyrinth, she encounters a varied cast of characters that include Hoggle, a grumpy dwarf who initially misleads her, Ludo, a gentle beast who becomes a loyal friend, and Sir Didymus, a chivalrous albeit headstrong fox-terrier riding a sheepdog. Each companion has their own quirks and proves instrumental in confronting the challenges of the labyrinth. The path is fraught with illusions, riddles, and the Goblin King's minions attempting to thwart her progress. Sarah must use her wit and willpower to navigate the ever-shifting environment, learn valuable lessons about friendship, and muster the courage to face the Goblin King and save her brother.