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Charity and her young brother are taken in by Merlin Durand, the son of a penurious millionaire, when their mother, a poor cleaning woman, dies. Charity is a strong believer in the world of fairy tales, and calls Merlin "The Prince". Merlin's cheapskate father cuts off his allowance until he gets a job and earns a salary, then leaves home for a "water cure". His servants immediately take a vacation, leaving the house empty, so Charity and Merlin hide there until Merlin can find a job. Charity begins to call the mansion "Charity Castle". They soon wind up involved with a strange cast of characters, including a burglar and an unemployed Shakespearean actor.