The story opens with a poor soldier returning home from war. He meets a witch, who asks him to climb into a hollow tree to retrieve a magic tinderbox. The witch gives the man permission to take anything he finds inside the chambers, but he must return the tinderbox. In the tree, he finds three chambers filled with precious coins guarded by three monstrous dogs, "one with eyes the size of teacups", who guards a vault filled with pennies, one with "eyes the size of water wheels", who guards a vault filled with silver, and one with eyes "the size of Round Tower", who guards a vault filled with gold. He fills his pockets with money, finds the tinderbox, and returns to the witch. When she demands the tinderbox without giving a reason, the soldier lops off her head with his sword.