Misfortune plagues a poor woodcarver until it get bored and asks the woodcarver to pass it on to the rich and pompous merchant Habermoos. After Habermoos is plundered by robbers, he sells Misfortune to the king, who is soon bankrupt and under threat of attack by neighboring countries. In order to escape the dangers of war, the nasty creature attaches itself to young Michael. Will Michael be able to thwart Misfortune and break the cycle of bad luck before his beloved Kathrin is forced to marry Habermoos?

Based on a fairy tale by Samuil Marschak called "Wer das Unglück meistert, findet das Glück" (trans. "Whoever Masters Misfortune Finds Happiness").