A king, torn with indecision between his cruel son and his kind-hearted daughter to leave his kingdom to, follows the advice of a witch. Leaving his crown hidden in the woods for one of them to find, it is found instead by Rubel, a young thief, who presents it to the princess, inadvertently fulfilling the kings criteria to become the heir himself. In return the princess presents him with a lock of her hair.
Four years later, Rubel is returning from sea, having spent the intervening period as a sailor. Expecting to meet his grandfather at port, he instead discovers that his grandfather has perished at sea when the ship he was aboard sank. Rubel seeks out his friends from before only to find them moved, married and dead. Alone and abandoned by family and friends, Rubel goes to the forest where he used to play and finds the Angel Tree dead and his imp friend, Varkias, turned to metal.
The Shadow Lady come out of the woods and preying upon Rubel's insecurity tries to get him to accepts her into his heart. Varkias reanimates and stops her. She begins to attack the Angel Tree but Rubel strikes her with a locket containing the princess's hair, which magically affects her, and drives her away.