The Laughing Princess is a collection of 12 interrelated stories told to a brother and sister of that special age at which they had recently discovered that their parents did not always understand them. Petra and Daniel are bored by the quaint fishing Village where their parents have chosen to holiday, until they picnic alone on a beach below a ruined castle. There, they encounter a small but powerful Dragon who tells them stories in which they meet a princess, a wizard, a blind man in love, ...