The setting is a small fishing village. The former seaman Longren (Ivan Pereverzev) raises his daughter Assol (Lena Cheremshanova/Anastasiya Vertinskaya) alone after losing his beloved wife, making a meager living by selling the toy boats he carves from wood. As a child, Assol encounters an old man (Nikolay Volkov) who claims to be a wizard and promises the girl that one day a prince will come on a ship with scarlet sails to carry her away. The villagers scoff but Assol believes her dream will come true one day.
Arthur Grey (Sasha Lupenko/Vasily Lanovoy) is a nobleman's son who breaks away from his cruel father (Pavel Massalsky) to pursue a life at sea, and eventually becomes the captain of a merchant vessel. Having set to port at Assol's village, he spies the young maiden sleeping in the forest and falls in love. After inquiring in the village he learns of Assol's dream and sets about to make it come true.