When Katya's father, Ivan, and his wealthy but selfish brother Dmitri disagree about which of them owns a newly born foal, it falls to the Tsar of all Russia to settle the case.

The Tsar decides to do so by setting the brothers a riddle.

Both Ivan and Dmitri are flummoxed. They return home to seek advice, and Ivan turns to his daughter, seven-year-old Katya, for help.

As soon as Katya hears the riddle, she knows exactly what to do.

The events that follow change all of their lives, and the wit and courage of this spirited young heroine make her a truly inspiring and memorable character.