Dagmar is the daughter of Lord Alrik, who ruled over the town of Grimsvig. She met Klaus after he had carved her a wooden bird, to replace Dagmar's real bird who had died recently. This cheered her up and they became friends.
Years later, a young Magnus poisoned Lord Alrik and blamed the young captain of the Grimsvig guard Klaus for it. Because Dagmar believed Klaus to be a traitor, he left the town. She heard Klaus was being killed by wolves.
Years later, after she had married Lord Magnus and had borne him a son Jonas, she met Klaus again. He freed her and the townspeople of the cruel Lord Magnus and the demon Krampus. She grew old with Klaus and eventually died of old age.