When the miserable Emperor is prescribed a peculiar cure for his misery - "You must find a happy person and wear their underpants!" - he discovers that the only happy person in the entire kingdom is a mysterious forest dweller who plays an enchanted flute. The Emperor invites the happy man, Theo, to stay in the Palace in order to discover the source of his bliss. Meanwhile, a melancholic Princess longs to realize her True Self and dreams of traveling...