The master puppeteer, Gaspare Grisini, is so expert at manipulating his stringed puppets that they appear alive. Clara Wintermute, the only child of a wealthy doctor, is spellbound by Grisini's act and invites him to entertain at her birthday party. Seeing his chance to make a fortune, Grisini accepts and makes a splendidly gaudy entrance with caravan, puppets, and his two orphaned assistants.