The seven-year-old hero, Nathaniel, is not a confident reader. When his eccentric old aunt Eleanor dies, she leaves her house to his parents and her huge book collection to the young boy. Nathaniel discovers that the books shelter all the heroes found in children's literature. Among them are Alice in Wonderland, Puss in Boots, Pinocchio and Little Red Riding Hood and they are counting on him for protection: if they leave the library, they will disappear along with their stories forever. When his parents start selling off the books, Nathaniel is shrunk by the evil fairy Carabosse and must brave everything to save his miniature friends.