The Child smiles delightedly in his toy-filled room as Santa emerges from the chimney, but joy turns out to be terror as the bearded visitor is followed by more of the same: cut to a man screaming in a laboratory where, unable to dream himself, he has stolen the nightmare of the kidnapped orphan. Unsatisfied, the man named Krank seeks for more young minds to draw his dreams from. One of the unfortunates to be kidnapped is Denree, who is scooped away from his older sister Miette. Miette becomes desperate as she searches for her little brother Denree. She decides to ask the giant, who calls himself One, for help. Together the two go on a quest to find Miette's little brother and the other stolen children. They come across the bizarre and the insane, in the search for the City of Lost Children.

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