Peter, a woodsman and his mother live in the Black Forest where he exists by selling charcoal. Stung by the ridicule of the wealthier inhabitants of the village and desiring to marry the beautiful Lisbeth, he sees his only chance for prosperity by locating a good forest spirit, the small Glasmännlein who grants him two wishes at first, then a third wish later. Peter wishes for wealth that he purchases a glassworks but due to his inexperience the glassworks fails and he gambles his money away.