In the woods stands a little fir-tree. He is preoccupied with growing up and is thoroughly embarrassed when a hare hops over him, an act which emphasizes his diminutiveness. The women call him the baby of the forest and again he is embarrassed and frustrated. A stork tells him of seeing older trees chopped down and used as ship masts, and the little tree envies them. In the fall, nearby trees are felled and the sparrows tell the little fir-tree of seeing them decorated in houses.
One day while still in his youth, the fir-tree is cut down for a Christmas decoration. He is bought, carried into a house, decorated, and, on Christmas Eve, glows with candles, colored apples, toys, and baskets of candy. A gold star tops the tree. The children enter and plunder the tree of its candy and gifts, then listen to a little fat man tell the story of 'Klumpe-Dumpe' "who fell down-stairs, and yet was raised to high honours, and obtained the princess's hand".
The next day, the fir-tree expects the festivities to be renewed, but servants take the tree down and carry him into the attic. The tree is lonely and disappointed, but the mice gather to hear the tree recite the tale of "Klumpe-Dumpe". Rats arrive and, when they belittle the simple tale, the mice leave and do not return. In the spring, the fir-tree â€" now withered and discolored â€" is carried into the yard. A boy takes the star from its topmost branch. The fir-tree is then cut into pieces and burned.
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