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Various nobles abandon ship in a storm and land on an island - Alonso, King of Naples, his brother, his son Ferdinand, and Antonio, who usurped the duchy of Milan from his brother Prospero. But Prospero and his daughter Miranda have been living on the island for twelve years, and the shipwreck was a magical illusion Prospero created to bring his enemies to him. The ship is not wrecked but hidden.

Prospero had rescued the fairy Ariel from the witch Sycorax, who had imprisoned him in a tree. Sycorax also had a deformed son, Caliban, now Prospero's slave.

Miranda and Ferdinand (King Alonso's son) fall in love. Prospero secretly approves. Caliban plots against Prospero, with others, but Prospero sends the fairies to chase them away.

Eventually, Prospero reveals himself to the troublesome visitors, and forgives Antonio. Alonso sensibly restores Prospero's dukedom to him, and Prospero promises to return them all all home safely on their ship, which was not wrecked at all.