Young Dorothy lives in a small house with her aunt and uncle, Henry and Em, on their farm in Kansas. Life on the farm is taxing. Dorothy gets solace and joy from her dog, Toto.

Henry infers from the sky and the gathering winds that a cyclone is coming. He hastens to care for the livestock while Em runs into the cyclone cellar, urging Dorothy to come with her. Dorothy runs to grab Toto, who has hidden under her bed in fear. As she goes to join her aunt in the cellar, the wind lifts the house into the air; Em is left behind in the cyclone cellar. Dorothy, alone except for Toto, sits in the middle of the floor and then curls up in her bed as the house is transported.

Dorothy is shocked awake with a jolt as the house lands on the ground. She opens the door and is amazed to see a beautiful countryside, including fruit-bearing trees, banks of flowers, a sparkling brook, and colorful birds singing in trees.

The house is approached by a woman in white, who introduces herself as the Witch of the North. She is accompanied by three small men, dressed in blue clothing, hats, and boots.