The teenager Sarah is forced by her father and her stepmother to babysit her baby brother Toby while they are outside home. Toby does not stop crying and Sarah wishes that her brother be taken by the Goblin King. Out of the blue, Toby stops crying and when Sarah looks for him in the cradle, she learns that her wish was granted and the Goblin King Jareth has taken him to his castle in the Goblin City in the middle of a labyrinth. Sarah repents and asks Jareth to give Toby back; but the Goblin King tells her that she has to rescue her brother before midnight, otherwise Toby will be turned into a goblin. Soon Sarah teams up with the coward goblin Hoggle, the beast Ludo and the knight Didymus and his dog Ambrosius in her journey. Will they rescue Toby in time?