In a whimsical tale, a poor wood nutter and his partner Woof plan to abandon their children, Handsel and Gristle, in the forest due to poverty. The children overhear the plan and use clever tactics to find their way back home. On a second attempt, they discover a house made of sweets, inhabited by a wicked witch. The witch captures Handsel, but Gristle outsmarts her, leading to their escape. They return home with treasures, and after Woof's death, they live happily with their father.

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