Wanting a lavish production to mark the 25th anniversary of UFA, the German film studio, Joseph Goebbels, director of the Nazi propaganda machine, commissioned an adaptation of Baron von Münchhausen‘s “autobiographical” stories. Baron von Münchhausen (1720-97) was an eccentric figure in European history, whose tall tales about his adventures rival anything to be found in the legends of Paul Bunyan or classic figures like Odysseus. This film recounts some of the episodes from the Baron’s sensational stories, which are set in the world of the 18th century.

When young Martina takes up a scholarship at the Johann-Sigismund Gymnasium boarding school, she finds herself caught in the rivalry between the boarders and the "externals" from the local village.

When Emil travels by bus to Berlin to visit his grandmother and his cousin, his money is stolen by a crook who specializes in digging tunnels. Emil must get the money back as it is for his grandmother. While following the thief, Emil runs into Gustav, an enterprising young boy who gathers up all his friends to help Emil find the money. Emil's cousin also gets involved and they get into more trouble than they bargained for when Emil's pickpocket turns out to be mixed up with a couple of notorious bank robbers.