Christmas Eve. The children of the lumberjack, Tiltil and Mitil, sleep in their beds. Attracted by the sounds of music, the children run to the window and watch the Christmas festival in the rich house opposite. There is a knock on the door. An old woman appears in a green dress and a red cap. She has a hunchback, chrome, one-eyed, crocheted nose, walks with a wand. This is Fairy Berilyun. She tells the children to go in search of the Blue Bird. It annoys her that children do not distinguish between obvious things. “One must be brave to see the hidden,” says Berilyuna and gives Tiltil a green hat with a diamond, turning which a person can see the “soul of things”. As soon as Tiltil puts on his cap and turns the diamond, everything around is wonderfully transformed: the old sorceress turns into a fairy princess, the poor environment of the hut comes to life. Souls of Hours, Souls of Karavaev appear, Fire appears as a rapidly moving person in a red tights. The dog and the cat also acquire a human appearance, but remain masked by a bulldog and a cat. The dog, having gained the opportunity to put his feelings into words, with enthusiastic cries of "My little deity!" jumping around tiltil. The cat cautiously and incredulously holds out her hand. Water begins to beat from the faucet with a sparkling fountain, and from her streams a girl appears with her hair loose, in flowing clothes, as it were. She immediately comes to grips with Fire. This is the Soul of Water. A jug falls from the table, and a white figure rises from the spilled milk. This is the timid and bashful Soul of Milk. From the sugar head, tearing the blue wrapper, comes a sugary fake creature in blue and white clothes. This is Soul of the Sahara. The flame of a fallen lamp instantly turns into a radiant girl of incomparable beauty under a sparkling transparent bedspread. This is the Soul of Light. There is a strong knock on the door. Frightened, the tiltil turns the diamond too fast, the hut walls fade, the Fairy becomes old again, and Fire, Bread, Water, Sugar, Soul of the Light, Dog and Cat do not have time to return back to Silence, the fairy orders them to accompany the children in search of the Blue Bird, predicting their death at the end of the journey. All but the Soul of Light and the Dog do not want to go. Nevertheless, having promised to find everyone a suitable outfit, the fairy takes them all through the window. And looking at the door, Mother Til and Father Til see only peacefully sleeping children.

In the Fairy Palace of Beryluna, dressed in luxurious fairy-tale costumes, the souls of animals and objects are trying to plot against children. The head of the cat. She reminds everyone that before, “before the man,” whom she calls a “despot,” everyone was free, and she fears that, having captured the Blue Bird, a person will comprehend the Soul of Things, Animals and Elements and finally enslave them. The dog objects violently. When Fairies, children and the Soul of Light appear, everything calms down. The cat hypocritically complains about the Dog, and he gets from Tiltil. Before the long journey, in order to feed the children, Bread cuts off two chunks from his belly, and Sugar breaks off his fingers for them (which immediately grow back, so the Sahara always has clean hands). First of all, Tiltil and Mytil have to visit the Land of Memories, where they must go alone, unaccompanied. There Tiltil and Mytile visit the deceased grandparents, and there they see their dead brothers and sisters. It turns out that the dead are as if immersed in sleep, and when loved ones remember them, they awaken. Having tinkered with younger children, having lunch with the whole family, Tiltil and Mytil hurry to leave, so as not to be late for a meeting with the Soul of Light. At the request of the children, grandfather and grandmother give them a thrush, which seemed completely blue to them. But when Tiltil and Mytile leave the Land of Memories, the bird turns black.

In the Palace of Night, the Cat is the first to warn the hostess about the imminent danger - the arrival of Tiltil and Mytil. Night cannot forbid a person to open the gates of her secrets. Cat and Nights can only hope that a person will not catch a real Blue Bird, one that is not afraid of daylight. Children appear accompanied by Dog, Bread and Sugar. The night tries to deceive first, then intimidate Tiltil and not give him the key that opens all the doors in her palace. But Tiltil alternately opens the door. Because of one, several fearless Ghosts slip out, because of another, where the diseases are located, Runny Nose manages to run out, because of the third they almost break out into freedom of war. Then Tiltil opens the door, behind which the Night stores extra Stars, his favorite Fragrances, Wandering Lights, Svetlyakov, Rosa, Nightingale Singing. The next, large middle door, Night advises against unlocking, warning that visions lurk behind it so formidable that they do not even have a name. The companions of Tiltil - all but the Dog - hide in fear. Tiltil and Dog, struggling with their own fear, open the door, behind which there is a garden of marvelous beauty - a garden of dreams and night light, where among the stars and planets magical blue birds flutter tirelessly. Tiltil calls his companions, and, each having caught several blue birds, they leave the garden. But soon the caught birds die - the children were not able to find that one Blue Bird that endures the light of day.

Forest. A Cat enters, greets the trees, talks to them. Pits them on children. Trees have something to not love the lumberjack's son. And Tiltil was downed to the ground, and the Dog was barely freed from the bonds of Ivy, he was trying to protect the owner. Both of them are close to death, and only the intervention of the Soul of Light, which tells Tiltil to turn the diamond on his cap to immerse the trees in darkness and silence, saves them. The cat manages to hide its involvement in the riot.

Children are looking for the Blue Bird in the cemetery. At midnight, Tiltil fearfully turns the diamond, the graves open, and from them whole sheaves of ghostly, magically beautiful white flowers appear. Birds sing enthusiastic hymns to the Sun and Life. “Where are the dead? .. - There are no dead ...” - Tiltil and Mytil exchange remarks.

In search of the Blue Bird, children with their escort find themselves in the Gardens of Bliss. Fat Bliss almost pulls Tiltil and his companions into their orgies, but the boy turns the diamond, and it becomes evident how Fat Bliss is miserable and ugly. Home Blisses appear, which amazes that Tiltil is unaware of their existence. It is the Bliss of Being Healthy, the Bliss of Loving Parents, the Bliss of the Blue Sky, the Bliss of Sunny Days, the Bliss of Seeing Lighting Stars. They send the fastest Bliss to Run Down the Dew Barefoot to inform Great Joys about the arrival of children, and soon high beautiful angel-like creatures in shining clothes appear, Among them Great Joy To Be Just, Joy To Be Kind, Joy To Understand and the purest Joy of Motherly Love. She seems to the children similar to their mother, only much more beautiful ... Maternal Love claims that she is the same at home, but nothing can be seen with her eyes closed. Upon learning that the Soul of Light has brought the children, Maternal Love convenes other Great Joys, and they salute the Soul of Light as their mistress. Great Joys ask the Soul of Light to throw back the veil, which still hides the unknown Truths and Bliss. But the Soul of Light, fulfilling the order of its Lord, only wraps itself more tightly in the veil, saying that the time has not come yet, and promising to come someday openly and boldly. Hugging goodbye, she parted with Great Joys.

Tiltil and Mytilus, accompanied by the Soul of Light, find themselves in the Azure Palace of the Kingdom of the Future. Azure Children come running to them. These are children who will someday be born on Earth. But you cannot come to Earth empty-handed, and each of the children is going to bring some kind of invention there: the Happiness Machine, thirty-three ways to extend life, two crimes, a car flying through the air without wings. One of the kids is an amazing gardener who grows unusual daisies and huge grapes, the other is the King of the Nine Planets, another called to destroy Injustice on Earth. Two azure children stand embracing. These are lovers. They cannot look at each other and constantly kiss and say goodbye, because on Earth they will be separated for centuries. Here Tiltil and Mytilus meet their brother, who will soon be born. Dawn is engaged - the hour when children are born. The bearded old man Time appears, with a scythe and an hourglass. He takes those who are about to be born on the ship. The ship that takes them to Earth swims and hides. Distant singing is heard - this is sung by Mothers who meet children. Time in amazement and anger notices Tiltil, Mytilus and the Soul of Light. They flee from him by turning a diamond. Under the veil, the Soul of Light hides the Blue Bird.

At the fence with a green gate - Tiltil does not immediately recognize his native home - the children part with their companions. Bread returns Tiltilu cage for the Blue Bird, and the remaining empty. “The Blue Bird, apparently, either does not exist at all, or changes color as soon as it is put into a cage ...” says the Soul of Light. Souls of Objects and Animals say goodbye to children. Fire almost burns them with stormy caresses, Water murmurs farewell speeches, Sugar utters false and sweet words. The dog rushes impetuously to the children, he is horrified by the thought that he will no longer be able to talk with his beloved master. Children persuade the Soul of Light to stay with them, but this is not in her power. She can only promise them to be with them “in every glancing moonbeam, in every affectionately staring little star, in every dawn that deals, in every lighted lamp”, in their every clear and clear thought. Beats eight hours. The gate is squatted and immediately slams behind the children.

The lumberjack’s cabin was magically transformed - everything here became newer, more joyful. Jubilant daylight breaks through the crevices of the shutters. Tiltil and Mytile sleep sweetly in their beds. Mother Til comes to wake them. Children begin to talk about what they saw during the trip, and their speech scares the mother. She sends father for a doctor. But then Berlengo’s Neighbor appears, very similar to the fairy Berilyuna. Tiltil begins to explain to her that he was unable to find the Blue Bird. The neighbor guesses that the children dreamed of something, perhaps when they were sleeping, moonlight fell on them. She herself talks about her granddaughter - the girl is unhealthy, does not get up, the doctor says - nerves ... Mother persuades Tiltil to give the girl the neck of neck she dreams about. Tiltil looks at the turtledove, and it seems to him the Blue Bird. He gives the bird cage to a neighbor. Children with new eyes see their home and what is in it - bread, water, fire, a cat and a dog. There is a knock on the door, and a Berlengo Neighbor enters with a blond unusually beautiful Girl. The girl presses Tiltil's neck to her chest. Tiltilu and Mitil neighbor granddaughter seems like a Soul of Light. Tiltil wants to explain to the Girl how to feed a turtledove, but the bird, taking advantage of the moment, flies away. The girl is crying in despair, and Tiltil promises her to catch a bird. Then he turns to the audience: “We ask you very much: if any of you find it, then let it bring us - we need it in order to become happy in the future ...”