He comes upon a "human" house of the Wolgers family where Dunderklumpen finds toys belonging to a boy named Jens and his young sister Camilla.

This adorable and amusing crew includes the small but fiercely brave lion Lionel, the demanding toy girl Doll, the cute harmonica-playing bear Pellegnillot, and the ridiculous Dummy the Bunny.

The gang also meets the flying paper Malte (one of Jens's drawings come to life), the living-talking mountain Jorm, and an elderly woman named Elvira Fattigan who's an old friend of One-Eye.

In the end Elvira reminds One-Eye that his fall from grace came after encountering human materialism, and soon the chest is found to contain a feather, a dandelion and a rock that are considered treasures to a child.

Realizing the chest had no valuables but cherished treasures, everyone celebrates in song and dance, One-Eye becomes friends with Dunderklumpen, the toys stay behind with the both of them and Jens and his father return home together.