In Gerald and the Wee People, Gerald and Vernon discover an unusual spot in the woods. It's always clear of any vegetation; even autumn leaves remain outside the perimeter.

The most alarming characteristic of the clearing is Gerald's uncanny ability to "see" a miniature village inhabited by the wee people. Vernon tolerates his friend's "visions" but becomes concerned when Gerald insists he'd had a visitation from one of the villagers. It seems the village is under attack, and the teens are urgently needed to help.

Determined to prove that wee people only exist in Gerald's imagination, Vernon agrees to venture out to the clearing late one night. But, instead of demonstrating that Gerald is wrong, Vernon is drawn into his friend's enchanted vision, and both boys charge off to the rescue.

While in the wee people village, Gerald and Vernon aid the residents in their fight against the misshapen ones while also trying to devise a plan to outsmart a forest god intent on destroying all life.

The boys encounter a mystical far-seer named Sheela, who decrees that the fighting will never end until the boys fulfill an ancient prophecy filled with many dangers and obstacles. Against their better judgment, Gerald and Vernon embark on a quest accompanied by Sheela and five other companions into the volcanic realm of Miach, the forest god. Their task: defeat the demented god and restore peace. However, not everything goes as planned.