A poor miller's daughter named Serilda is a talented storyteller, but when she is caught by the sinister Erlking and his undead hunters, her talents allow her to claim that she can spin straw into gold, a lie that saves her life. She is brought to his castle where the king orders her to spin straw into gold or be killed for telling lies. She soon meets Gild, a poltergeist that agrees to help her in exchange for her golden necklace. Erlking gives her two more ultimatums, but Serilda has nothing left to give Gild by the third demand. Things get even more complicated when Serilda and Gild begin to fall for one another.