In the present day, a young girl named Rosaleen (Sarah Patterson) dreams that she lives in a fairytale forest during the late 18th century with her parents (Tusse Silberg and David Warner (actor)) and sister (Georgia Slowe), but one day her sister is killed by wolves. While her parents are mourning, Rosaleen goes to stay the night with her grandmother (Angela Lansbury), who knits a bright red shawl for her granddaughter to wear. The superstitious old woman gives Rosaleen an ominous warning, to beware men whose eyebrows meet. Rosaleen returns to her village, but finds that she must deal with the advances of an amorous boy (Shane Johnstone). Rosaleen and the boy take a walk through the forest, but the boy discovers that the village's cattle have come under attack from a wolf. The villagers set out to hunt the wolf, but once caught and killed, the wolf's corpse transforms into that of a human being.