At the end of the 1950s, the production of optics in the German Democratic Republic has reached top quality and instigates interest in the West. When national demand rises strongly and at the same time the export to South America heavily decreases, the Volkspolizei - the GDR police force - starts to look into the case. Two seemingly unrelated cases are the starting point for the investigation by second lieutenant Schellenberg of the department for optics racketeering: An old woman who was arrested in the Berlin city railway for trying to smuggle a pair of binoculars to West Berlin, and a dead person in an area of allotments who was involved in obscure dealings with optical devices.

"Das Märchenschloss" is a children’s film based on a picture book by Fred Rodian. It tells the story of three brothers - Klaus, Günter, and Peter - who head out into the world to meet their dreams. While Klaus dreams of a combine harvester, Günther dreams of a tractor. Little Peter, however, yearns for something completely different: a fairytale castle.