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The story of a little girl name Karen who was very poor and was given a pair of red shoes made of cloth to keep her feet warm in the winter. When her mother dies, she's adopted by a rich older woman who burns the shoes, saying they're ugly. Karen grows up pretty and happy with the old woman, but one day she sees a princess wearing beautiful red shoes and wants a pair just like them. When it comes time for Karen to be confirmed, she's to have a new pair of shoes. The pair she wants are red leather shoes that were maid for a count's daughter, but were too small. Karen buys them without the old woman knowing and wears them to her confirmation and gets in trouble for it. When the old woman falls ill, instead of taking care of her Karen goes to a ball and dances, but finds she can't stop dancing.

In this extraordinarily faithful stage version of the second Oz book, the only major deletions were things unperformable on stage (The Jackdaw's nest and the Gryphon/Sawhorse chase) and an increase in the role of Jellia Jamb, who remains in the Emerald City in the novel. Tip is forced to live with a horrible witch Mombi, and decides one day to scare her with a Pumpkinhead man. Originally intending to smash it, she decides to test the powder of life she has obtained from Dr. Nikidik, which works. Forbidden to kill the boy, she plans to transform him into a marble statue the following morning. Taking the Pumpkinhead, Tip escapes during the night and meets General Jinjur and her all-woman army intent on conquering the Emerald City. Mombi agrees to help Jinjur, while Tip escapes the Emerald City with the Scarecrow to obtain the help of the Tin Woodman. Tip eventually learns the importance of his Emerald ring, and that he is the key to Restoration Oz.

A stage adaptation of the children's story performed in a Children's Theatre of Minneapolis production.