The film, based on the fairy tale "Thumbling" by the Brothers Grimm, is about a tiny youth who manages to outwit two thieves determined to make a fortune from him.

Starring Russ Tamblyn in the title role, the film features a largely British supporting cast (it was filmed in both Hollywood and London), including Bernard Miles and Jessie Matthews as Tom's adoptive parents, June Thorburn as the Forest Queen, and comic actors Terry-Thomas and Peter Sellers as the villainous duo who try to exploit the tiny hero for profit.

Later, they are roused by a soft knocking at the door and find before them a boy who is literally the size of a thumb, who addresses Jonathan and Anne familiarly as "Father" and "Mother".

Tom is carried off by a balloon up to the top of the nearby castle's treasury tower, where two thieves, Ivan and Antony, are conspiring to steal the gold.

They realize that due to his size, Tom will easily be able to slip between the bars of the grill on the treasury roof and trick him into believing that they need the gold to help poor orphans.

With Woody's help, Tom tracks down the real thieves and, thanks to his ability to control animals, especially donkeys and horses, eventually manages to bring them back to the town square, along with their loot, thereby exonerating his parents.

[2] He signed a deal with United Artists to make the movie for a reported $2 million with Woody Herman and Peggy Lee to star.

[10] Eventually in June 1957 Pal signed a deal to make the film with MGM; he would use his company, Galaxy Productions and the movie would be made in England.

[13] He filmed scenes in England in early 1958, taking over every one of the seven sound stages at MGM's London studios, and using two crews.

[14][15] In November 1958 Pal announced plans to make three more tom thumb movies each starring Tamblyn, to be released once a year.

[17] Variety wrote, "film is top-drawer, a comic fairy tale with music that stacks up alongside some of the Disney classics";[18] and Time called it "unusually fresh and appealing; it is kid stuff, but it will probably sell a lot of popcorn to the grownups, too.

At the 1959 Writers Guild of America Ladislas Fodor was nominated for a WGA Award (Screen) for Best Written American Musical.