Charles MacLance, a mischievous little boy sent to live with his cruel aunt, Mrs. MacMiche, takes his happiness from the make-believe world of fairies which he has created with Juliet, a little blind girl. When Charles’ aristocratic grandfather dies, however, he is sent away to an expensive school, in preparation for his adult life as a lord. As he grows up, he forgets Juliet and his make-believe friends, and becomes engaged to a fashionable society girl, but the soul of his former self leaves him to rejoin the good fairies. Meanwhile, Mrs. MacMiche has come to believe in fairies, and in her new goodness, she asks Charles to come and live with her again. At first reluctant, Charles soon resurrects fond memories of the past. Juliet, whose sight has been restored, helps him to complete his change, and he asks her to marry him. In the end, the couple live happily with Mrs. MacMiche in their fantasy world.