Káló, the handsome Gypsy lad, lies among the wildflowers on the banks of a stream, lost in idle daydreams. He falls in love with the seductively beautiful queen of the underwater realm and finds himself mixed up in all sorts of adventures to win her hand. With the help of Drinkárta, the witch with seaweed hair, he finally wakes up from his reveries, and in the end he lives happily ever after with Gilze, his true love.