Narrators Crantz and Guilder introduce Christian Andersen and his parents, Hans and Anne Marie.

The family is on the way to Copenhagen, where Christian will begin his studies at the Royal Academy (Hans Christian Andersen – Part 1). The Andersens play the “story game,” where one person begins to tell a story and the others add to it one by one. Christian imagines an Ugly Duckling hatching from an egg (Hans Christian Andersen – Part 2), and the family arrives in Copenhagen (Wonderful Copenhagen). A Royal Guard presents Princess Vilhelmina, who enters the academy with Headmistress Thagar and the students. Christian is nervous to follow them, but Anne Marie and Hans convince him to go (Anywhere You Wander).

Princess Caroline, who uses a wheelchair, offers Christian a seat next to her. Christian quickly discovers that he is academically behind compared to everyone else at the academy, and Headmistress Thagar makes the class recite mathematical tables so he can catch up. Christian’s attention wanders, and he daydreams (Inchworm). Headmistress Thagar instructs Christian to stay behind during recess and continue studying. To his surprise, Princess Caroline stays behind as well, her nose in a book. She explains that her mother keeps her a secret to protect the royal image – she is an “invisible princess.”

Headmistress Thagar announces that the Students will present a performance of Shakespeare’s Hamlet to the king. After class, Headmistress Thagar gives Christian the keys to his room and his allowance, directing him to the market. He asks the headmistress to mail a letter to his parents.

Match Girls (including the Match Girl), Newsboys, Chimney Sweeps, Mrs. Madsen and the Sausage Sellers, and Gregors and the Fishmongers are in the town square (Setting Up Shop).

Christian mentions two princesses, and though the townspeople have heard rumors of a monstrous princess with scales and just one eye, Christian informs them that Princess Caroline is kind and smart, just hidden. When Mrs. Madsen and Gregors express that they are not getting the foot traffic they need, Christian tells a story to draw a Crowd (Thumbelina). Princess Caroline has also been watching, and she introduces Christian to her Nurse. Headmistress Thagar spots them in the crowd and sends them back to the castle. Christian is thrilled to have a friend in Princess Caroline (Thumbelina Tag).

The next morning, the Students are back in the classroom (Hans Attempts Math; Hans Attempts Math Again), and Christian finally gets an answer right! He opts to stay in the classroom with Princess Caroline during recess to cheer her up with a story. He spins the tale of “The Little Mermaid,” which isn’t finished yet, but Princess Caroline encourages him to keep going (The Little Mermaid).

The Students continue to review mathematics (Multiplication!).

A Crowd has gathered in the market to hear Christian’s story. He obliges, with help from Gregors, Mrs. Madsen, and Gerda (The King’s New Clothes). After the story, Christian is arrested for mocking the king.

Meanwhile back in Odense, Hans and Anne Marie have received Christian’s letter. They write back, continuing the story of the ugly duckling (Doing The Dishes).

Headmistress Thagar rescues Christian from jail, claiming that he is one of her prized students. She shares that, when she left her unhappy position teaching the children of the Russian tsar to come teach the royal children of Denmark, there had been a mistake and she trained the royal dogs instead (What Is Life?). She excelled with the dogs and earned her current position. She asks Christian to tell the story of Hamlet like he tells his stories in the market, and he agrees, so long as she will use his preferred name instead of calling him Hans. She agrees, insisting that he give his completed story to the king.

Back in the classroom, the Students have moved on to calculus (Hans Does Pre-Calc). Headmistress Thagar announces that Christian will lead their production of Hamlet, and Christian explains how he gets his ideas (Rumble, Rumble, Rumble).

Princess Caroline encourages him to write down his story, and Christian admits that, as much as he loves his father, he feels pressure to make something of their family name. Princess Caroline offers to partner with Christian to lead Hamlet (No Two People).

Headmistress Thagar informs Christian that his father has had an accident, and Christian arrives home to a bedridden Hans. During the story game, Christian reveals that the Ugly Duckling has been a swan all along (Ugly Duckling). Though Hans drifts to sleep during the story, he wakes at the end and tells Christian that he’s always been their swan. After Hans’s funeral, Anne Marie decides to run the cobbler business herself and sends Christian back to the academy (Anywhere I Wander – Reprise).

Princess Caroline is running rehearsals (Hamlet Rehearsal). Princess Vilhelmina doesn’t want to sing, and the others must convince her (Everybody Sings).

Christian returns just in time and hands his story to Headmistress Thagar. Instead of introducing the performance himself, he invites Princess Caroline onstage, who is finally able to stand in the spotlight. The Students perform their show (Hamlet).

After the presentation, Christian presents his story to the King. He is touched when he sees that Anne Marie has come for his royal debut. He has written “The Little Mermaid” as Hans Christian Andersen in honor of his father. Everyone celebrates Christian’s accomplishment (Finale Ultimo).