Cat Paphnutius is sleeping in the fairy backyard of birds. He is awakened by two crows, that are worried about duckling lonely walking through the woods. Duckling enters the yard singing the song about her dream. The crowns are happy that duckling is alive and unharmed.
The Old Rooster wakes up from sleep being amazes by strange interest which the cat accrues to Duckling. Paphnutius introduces the Duckling. The Old Rooster sigs a song about his youth which is gone and unfulfilled wishes. The Old Rooster finds out about her dream and he gives the advise the Duckling not just to dream but to make the dream come true! The Rooster gives a sword as gift to Duckling.
Suddenly, the courtyard is visited by the Turkey Emperor and his courtiers: geese, ducks, hens and cocks. Everybody seeing the duckling, they cannot hide the repulsion towards it. Little duckling does not mind, but on the contrary, began to tell them about the blue islands, about her dream to find these places. All birds in the yard began to laugh out loud, but the proud turkey doesnt recognized the duckling dreams and assign the function of drummer. Duckling does not want to serve turkey, she tends to Blue Islands, to her mother, where she will become a white swan.
In the yard arise other two characters- turkeys guards Brex-Fex and Max-Vax. Turkeys have an unfriendly attitude towards the duckling, which tried to explain to them that the earth is large and round. It has many fields, forests, rivers, seas, oceans, blue seas and islands, where she was borned. Courtiers do not believe Duckling. They know for sure that the earth represents this court "from fence to fence." Outraged by her disobedience, the guard of the king tries to catch the duck. The Old Rooster rises and defend against them protecting the duckling. She barely manages to save herself and escape from the yard.
Duckling wanders through the forest, humming her song. Suddenly, two crows apear. They suggest the Duckling to be a free bird without dreams and occupations, to fly where she wants but Duckling wants to fulfill her dream no matter happens. Owls appearance has startled crows. They flew in fear, leaving the duck alone.
Owls frightens the Duckling. She bears in her mind the taunts and insults occurring from birds of the yard but the old rooster’s words encourages the Duckling.
Cat Paphnutius appears in light of mysterious forest. Duckling is happy that she is not alone. The cat- very good-hearted but naive proposes Duckling to return to the yard. Otherwise, Turkey will send guard after her and will be severely punished. Duckling does not accept the proposal and the cat being touched by her kindness, begins to look for blue islands with the duck. In the dark woods are emerging fireflies illuminating the way for duck and cat going merry together.
The joy was not long lasting. Magpies came in haste and said that a great misfortune is approaching. Hearing the news, Paphnutius hides and among the trees are appearing guards of Turkey Emperor. They rush over to take her back to the king. Duckling take the sword given by the old rooster and is gaining in the fight with the guards. Magpies rushed to help Duckling.
Suddenly, there appears a flock of white swans, of rare beauty. They scare the guards who took off running. Duckling runs to meet her mother. Swans surround the Duckling and ugly duckling turns into Swan.