1) Scheherazade volunteers to be the Sultan's bride in order to stop his practice of marrying and executing a new wife each day.
2) On her wedding night, she asks the Sultan if her sister Dinarzade can sleep in their chamber so they can have one last night together, as she expects to be executed in the morning.
3) During the night, Dinarzade awakens Scheherazade and asks her to tell a story. Scheherazade begins telling the story of a merchant who encounters a magic being in the woods.