This movie is about one summer holiday in the life of the famous children's book character Heidi, the orphan girl who lives with her grandfather (whom Heidi, like everybody else including the cast list, calls "Alm Uncle") on the outskirts of a small village in the Alps. Heidi has a gift of three carved wooden figures made by a craftsman neighbour: Caspar, Melchior and Balthazar. However, rather than gold, frankincense, and myrrh, her grandfather and the village doctor gradually teach Heidi the idea that the gifts they bring are faith, charity and hope.

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