Count von Herbeck, chancellor to the Grand Duke of Ehrenstein, is married but keeps it a secret because of his high ambitions. His dying wife writes him a letter urging him to make their young daughter a great lady. To this end, he arranges to have Torpete, a gypsy, to kidnap Gretchen, the daughter of the GRand Duke. He takes the coat and locket belonging to the little Princess and then sends his own daughter, Hildegarde, away. During the abduction of Gretchen she is wounded in the shoulder by a bullet. Fifteen years later Von Herbeck tells the Grand Duke he has found the Princess, and produces the coat, locket and Hildegarde as proof. Meanwhile, the real Princess has been abandoned by the gypsies and adopted by peasants, and has grown up as a “Goose Girl.” The young King Fredrick of Jugendheit is officially betrothed to the fake Princess but he does not wish to marry a woman he has never met. He disguises himself as a Vinter and travels around the countryside, meets the Goose Girl, and rescues her from the insulting attentions of a vicious Count, and longs to marry her. But since he can not marry a peasant, true love seems doomed. Or does it?