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Timm Thaler comes from a disadvantaged background, but he laughs a lot, and often. His laughter is so charming and contagious that the diabolical Baron Lefuet wants, at all costs, to have it for himself. And so the world's richest man makes the boy a dubious offer: if Timm agrees to sell him his laugh, he'll win every bet he ever makes in the future. After hesitating at first, Timm signs the contract. Though he can now seemingly fulfill his every wish, without his laugh he is a different person. It’s up to Timm’s friends Ida and Kreschimir to rescue him from the clutches of the baron and, through a clever trick, win back his inimitable laugh.