Alice falls asleep in a wood and dreams she sees a white rabbit, which she follows down a rabbit hole and through an underground passage. The rabbit leaves Alice in the hallway of many doors. On a table she finds a golden key, but finds the only door the key will open is too small for her to get through. She finds a bottle on the table labelled 'Drink Me'. She does, and it causes her to shrink until she is small enough to get through the door. However she is then too short to reach the key, which she left on the table. Finding a cake labelled 'Eat Me' she tries it, and grows again to a huge size, grabs the key, and then fans herself smaller using a fan left by the white rabbit. Now very small, she goes through the door into a garden, where she sees a big dog, and then enters the rabbit's house, where again she grows large, but by using the rabbit's fan she disappears.

Alice reappears before the house of the Duchess and goes into the kitchen, where she rescues a baby from a cook, who is throwing cutlery. But the baby turns into a pig in her hands. Moving on, she is given directions to the Mad Hatter's house by a Cheshire Cat, and arrives during a tea party, which she joins. However, the behaviour of the Mad Hatter, the March Hare and the Doormouse offends her, and she leaves to stumble across the procession of the Queen of Hearts, who offers to play croquet with her. Alice offends the Queen, who calls her executioner, but Alice boxes his ears and runs away, which causes her to wake and realise it was all a dream.