It has been said that living among humans are tiny but helpful creatures called Picori. They bestowed a magic sword upon a legendary hero who defeated evil spirits that attacked the world. Since then, the Kingdom of Hyrule has held the Picori Festival in gratitude for the creatures' invaluable aid.

On the hundredth festival, a boy named Link joins his cherished childhood friend Princess Zelda in watching the martial arts contest at the castle. But chaos soon unfolds when the victorious contestant, Vaati, uses his powers to unseal a chest bound by the sacred Picori Blade, unleashing the evil spirits of yore and turning Princess Zelda to stone. To save his friend and undo the petrifying curse, Link volunteers to restore the shattered Picori Blade. As he heads out to the Minish Woods in search of the elusive Picori, Link welcomes help from an unusual new ally—a talking cap-shaped creature called Ezlo!