The story follows a young boy named Philip Haldane, who is stuck in bed recovering from an illness. To pass the time, he creates a magical city out of household objects, including a rug, a basin, and some toy soldiers.Philip soon finds that the magic city he has created is more than just a toy. He discovers that he can enter the city through a miniature door and that the city is populated by people and creatures that he has created in his imagination. Together with his companion, a princess he has imagined, he embarks on a series of adventures, including a quest to find a magical egg that will help them defeat an evil magician.