A little girl had many toys in her nursery, but she was particularly fond of her doll Grace and a noble tin soldier. Her uncle presents her with a new doll, and her joy over the gift causes her to dream a wonderful dream that night. She imagines that both dolls and the tin soldier came to life, but the new doll fascinated the tin soldier and they were married. The old doll was envious and heartless and lured away the young Benedict from his wife, and the poor deserted woman committed suicide by jumping over a cliff. The girl was peering over the edge of the cliff when she awoke to find herself peering over the edge of the bed, while on the floor lay the new doll which she had dropped; the fall has smashed her to bits. It was a sad blow to her, but womanlike she blamed the man in the case, then the tin soldier's life was extremely unhappy. In time the child forgot the romance that had come to her in her dreams.
—Moving Picture World synopsis