Willow Afgood, a resident of a fairy-tale Lilliputian village, dreams of becoming a good wizard and taking the place of his teacher, a great magician and sorcerer. The adventure begins when Willow and her children discover a baby "daikini" - "big people" - in a basket that the river has nailed to the shore near their home.
Disliking the baby at first, Willow soon becomes attached to it with all her heart. In a vain attempt to return the child to the "big people", he finds himself involved in a struggle against the evil queen, the sorceress Bavmorda. In his wanderings, Willow meets Crazy Martigan, a former soldier and thief. Martigan and Willow continually argue with each other, but in trouble they are inseparable friends.