During a thunderstorm, the father of Katie (Dakota Fanning) and Andrew (Thomas Curtis) reads a story to help calm their nerves. The one he chooses is "Hansel and Gretel," in which the little boy (Jacob Smith) and girl (Taylor Momsen) of the title are left in a dangerous forest by their evil stepmother, but they make several magical friends. Then Hansel and Gretel are wandering alone when they stumble across a house made of candy -- but the woman inside is a witch who plans on eating Hansel.