Northern California's majestic Redwood Forest is the scene for a chance encounter between two young children (Matthew Garber, Karen Dotrice) and Jasper (Tom Lowell), a two-foot-high gnome. Jasper has been desperately searching for a suitable bride to please Knobby (Walter Brennan), his 900-year-old grandfather. Surprised and delighted with their find, the children agree to help Jasper with his predicament - a problem that develops into a wild chase when an enterprising showman (Sean McClory) discovers the gnomes and quickly masterminds a kidnapping plot!

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