A toymaker (Semon) reads L. Frank Baum's book to his granddaughter. In the story the Land of Oz is ruled by Prime Minister Kruel (Josef Swickard), aided by Ambassador Wikked (Otto Lederer), Lady Vishuss (Virginia Pearson), and the Wizard (Oz) (Charles Murray (American actor)), a "medicine-show hokum hustler". When the discontented people, led by Prince Kynd (Bryant Washburn), demand the return of the princess, who disappeared while a baby many years before, so she can be crowned their rightful ruler, Kruel has the Wizard distract them with a parlor trick: making a female impersonator (Frederick Ko Vert) appear out of a seemingly empty basket. Kruel sends Wikked on a mission.
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