10 years ago the Queen expels the people she feels are undesirables and they turn out to be the Dwarves, She said banish all the uglys and the towns people did not stand up for them because they believed the Queen when she said they were undesirables and ugly after being exiled from the town they joined together and became a band of thieves feeling that they had no other chance in life.
One day Prince Andrew Alcott (Armie Hammer) and his traveling companion Charls Rednbock are traveling in the forest and hear a sound Rednbock thinks they should ride on Alcott stops them to investigate what is in the woods making the sounds. Then they are ambushed by the dwarves who are on their stilts (which makes the Prince and his traveling companion think that they are giants). After being beaten Alcott kicks Grimm out from underneath him and Grimm falls off his stilts after seeing this Alcott and Rednbock figure out they are not Giants and mock them after they start taking his stuff. He calls them children which makes them made and they tie him and Rednbock up and leave them dangling.
The queen orders Brighton to kill Snow White and feed her to the Beast, Brighton takes Snow White to the forest, but he releases her and urges her to run. Snow White flees the Beast and collapses at the door to the Seven Dwarfs' house. She wakes up to find the dwarfs Grimm (Danny Woodburn), Butcher (Martin Klebba), Wolf (Sebastian Saraceno), Napoleon (Jordan Prentice), Half Pint (Mark Povinelli), Grub (Joe Gnoffo), and Chuck (Ronald Lee Clark).
Queen Clementianna levies another tax to pay for the parties she throws for Prince Alcott. Brighton collects the taxes, but, on the way back to the palace, the dwarfs rob Brighton and steal the money. Snow White sneaks away to return the money. The townspeople and the Town Magistrate (Alex Ivanovici) are overjoyed to have their money back and Snow White lets the Dwarfs take credit for it, earning them the people's acceptance and gratitude.
Meanwhile, Queen Clementianna informs Alcott that Snow White is dead. When the Prince finds out that the bandits have robbed Brighton, he goes after them, unaware of the awful things the Queen has done. In the forest, Alcott discovers that Snow White is alive and in league with the bandits. Each believing the other to be in the wrong. Snow White and Alcott duel with Snow White being outmatched however she wins throigh a dirty trick. Alcott returns to the Palace defeated and informs the Queen that Snow White is alive.
After Queen Clementianna discovers that Snow White is alive, she uses dark magic to create two giant wooden puppets in the forest and uses them to try and kill Snow White and the Dwarfs. Snow White is able to cut the strings of the puppets and break the spell. The next morning the Dwarves wake to discover that Snow's gone and left a note that says she loves them all dearly but believes that she has brought them only harm and leaves. They set out to find her outside and cheer her up and explain that they (and her Kingdom) need her.
Snow White and the Dwarfs crash the royal wedding and capture the Prince before Queen Clementianna and Brighton arrive. Back in the forest, the still-cursed Prince wishes to return to the Queen. Snow White kisses Alcott and the spell is broken after many attempts by the dwarves.
Snow White encounters Queen Clementianna who reveals that she can control the Beast that has been plaguing the forest and sends it after Snow White. But the Beast hesitates and Snow White sees that it wears a necklace with a moon charm on it similar to the one the Queen wears. She cuts the chain with her father's dagger and the Beast suddenly becomes engulfed in light. Queen Clementianna begins to age, and the Mirror Queen says this is her consequence for using dark magic. The Beast turns out to be Snow White's father who has no memory of the last ten years.
Grateful to Alcott for his assistance, the king agrees to let him marry Snow White. The dwarves are present and are thanked along with Alcott for helping them. During the wedding celebration, a crone in a hooded robe appears and offers Snow White an apple (which is poisoned) as a wedding gift. Realizing that the crone is Clementianna, Snow White offers a piece of the apple to Clementianna. Accepting defeat, Clementianna takes the apple as the and commits suicide by eating it.
The film's epilogue reveals what happened to the Dwarves: Grimm becomes a teacher again and writes a book of fairy tales, Napoleon becomes a hairdresser, Wolf "returned to his pack", Half-Pint finds a girlfriend, Grub just eats, Butcher becomes a flyweight champion, and Chuck joins the royal circus.