Dorothy lives with Uncle Henry and Aunt Em on the gray Kansas prairie, where sun and wind have bleached the land, the house, and even Aunt Em's face to a single sober color. A great cyclone lifts the farmhouse into the air with Dorothy and her dog Toto still inside and carries it far away, setting it down in the bright, green Land of Oz. The house lands on the Wicked Witch of the East, freeing the little Munchkins she had enslaved, and the Witch of the North gives Dorothy the dead witch's silver shoes and a protective kiss.
To get home, Dorothy is told to follow the road paved with yellow brick to the Emerald City and ask its ruler, the great Wizard of Oz, for help. Along the way she gathers three companions, each convinced he is missing something essential: a Scarecrow who wants brains, a Tin Woodman who wants a heart, and a Cowardly Lion who wants courage. The Tin Woodman explains that he was once flesh, but an enchanted axe cut him to pieces limb by limb until a tinsmith rebuilt him without a heart, so that he lost his love.
Reaching the Emerald City, each traveler is granted an audience and sees Oz in a different terrifying form: a giant Head, a lovely Lady, a dreadful Beast, a Ball of Fire. Oz refuses to grant their wishes until they kill the Wicked Witch of the West. The Witch enslaves them with her Winged Monkeys and works the Lion hard, but when she snatches one of the silver shoes Dorothy throws a bucket of water over her in anger, and the Witch melts away to nothing, freeing the captives.
Back at the palace the friends demand their rewards, and Toto knocks over a screen to expose the truth: Oz is no wizard at all but an ordinary man, a former balloonist and ventriloquist who drifted here and ruled by illusion. He calls himself a humbug and admits he is a good man but a very bad wizard. Still, he gives the Scarecrow a head of bran and pins, the Tin Woodman a silk-and-sawdust heart, and the Lion a drink he names courage, telling each that the quality was inside him all along.
Oz cannot fly Dorothy home in his patched balloon, which rises without her. Sent south to the good witch Glinda, the friends survive new dangers, and Glinda finally reveals that the silver shoes could have carried Dorothy home from the very first day. Dorothy parts from her comrades, who now have kingdoms of their own to rule, knocks the heels together three times, and is whirled back to the Kansas prairie and Aunt Em's arms, glad above all to be home again.