On a small barren island called Sazan, its few inhabitants have gathered at the village square to celebrate five years since the day princess Dolly took over the administration and turned the place into a peculiar princedom. However, the islanders do not seem so pleased. Gossip runs wild and the foreign domination gives rise to many objections and discussions. Princess Dolly is an eccentric rich American who bought the island from the Albanians and spends her money to satisfy her crazy tastes, while her government consists of a gang of embezzlers who flatter her weakness to serve their own interests, exploiting the island.
The grievances reach the princess's ears and she sends the prime minister, the chamberlain and the maid in honour to conduct a research on what the people think about her administration. They appear to the islanders disguised as foreigners, and the information they collect proves to be anything but flattering. Fortunately, the arrival of the princess herself, who gives away money to all her subjects and offers them rich spectacles, changes the mood of the people, who get excited and praise the beautiful and charming ruler. Two foreigners from Epirus stand out among the crowd at the fair. They are there because one of them, Vangos, is in love with the princess and wants to protect her from an imminent attack prepared by the Albanians against her island. He rushes to warn her about the lurking danger, and perhaps, confess his love to her. What follows is a series of tragicomic incidents culminating in a happy ending, far from mundane pettiness.