Alice Kingsleigh (Mia Wasikowska) is the daughter of Charles Kingsleigh (Marton Csokas), a wealthy man who planned to find profitable shipping routes through the world in the 19th century. However, many years afterward, Charles has passed away, and Alice misses his playful attitude.

Now feeling trapped in a world of proper etiquette for one such as herself, Alice is taken to a garden party, where it is hoped that she will accept a marriage proposal from Hamish (Leo Bill), the son of one of her father's business partners. However, Alice soon grows distracted seeing a rabbit with a waistcoat nearby, and rushes after the strange creature.

Following it, she finds her way to the trunk of an old tree some ways off, and falls down a hole. The hole leads her to a strange room, of which she finds a key, as well as a drink that makes her smaller, and a cake that increases her size. After getting the key and shrinking down to use a small door, she soon finds herself in an enormous garden area.