Alice sits on a riverbank on a warm summer day, drowsily reading over her sisters shoulder, when she catches sight of a White Rabbit in a waistcoat running by her. The White Rabbit pulls out a pocket watch, exclaims that he is late, and pops down a rabbit hole. Alice follows the White Rabbit down the hole and comes upon a great hallway lined with doors. She finds a small door that she opens using a key she discovers on a nearby table. Through the door, she sees a beautiful garden, and Alice begins to cry when she realizes she cannot fit through the door. She finds a bottle marked DRINK ME and downs the contents. She shrinks down to the right size to enter the door but cannot enter since she has left the key on the tabletop above her head. Alice discovers a cake marked EAT ME which causes her to grow to an inordinately large height. Still unable to enter the garden, Alice begins to cry again, and her giant tears form a pool at her feet. As she cries, Alice shrinks and falls into the pool of tears. The pool of tears becomes a sea, and as she treads water she meets a Mouse. The Mouse accompanies Alice to shore, where a number of animals stand gathered on a bank. After a Caucus Race, Alice scares the animals away with tales of her cat, Dinah, and finds herself alone again.
Alice meets the White Rabbit again, who mistakes her for a servant and sends her off to fetch his things. While in the White Rabbits house, Alice drinks an unmarked bottle of liquid and grows to the size of the room. The White Rabbit returns to his house, fuming at the now-giant Alice, but she swats him and his servants away with her giant hand. The animals outside try to get her out of the house by throwing rocks at her, which inexplicably transform into cakes when they land in the house. Alice eats one of the cakes, which causes her to shrink to a small size. She wanders off into the forest, where she meets a Caterpillar sitting on a mushroom and smoking a hookah (i.e., a water pipe). The Caterpillar and Alice get into an argument, but before the Caterpillar crawls away in disgust, he tells Alice that different parts of the mushroom will make her grow or shrink. Alice tastes a part of the mushroom, and her neck stretches above the trees. A pigeon sees her and attacks, deeming her a serpent hungry for pigeon eggs.
Alice eats another part of the mushroom and shrinks down to a normal height. She wanders until she comes across the house of the Duchess. She enters and finds the Duchess, who is nursing a squealing baby, as well as a grinning Cheshire Cat, and a Cook who tosses massive amounts of pepper into a cauldron of soup. The Duchess behaves rudely to Alice and then departs to prepare for a croquet game with the Queen. As she leaves, the Duchess hands Alice the baby, which Alice discovers is a pig. Alice lets the pig go and reenters the forest, where she meets the Cheshire Cat again. The Cheshire Cat explains to Alice that everyone in Wonderland is mad, including Alice herself. The Cheshire Cat gives directions to the March Hares house and fades away to nothing but a floating grin.
Alice travels to the March Hares house to find the March Hare, the Mad Hatter, and the Dormouse having tea together. Treated rudely by all three, Alice stands by the tea party, uninvited. She learns that they have wronged Time and are trapped in perpetual tea-time. After a final discourtesy, Alice leaves and journeys through the forest. She finds a tree with a door in its side, and travels through it to find herself back in the great hall. She takes the key and uses the mushroom to shrink down and enter the garden.
After saving several gardeners from the temper of the Queen of Hearts, Alice joins the Queen in a strange game of croquet. The croquet ground is hilly, the mallets and balls are live flamingos and hedgehogs, and the Queen tears about, frantically calling for the other players executions. Amidst this madness, Alice bumps into the Cheshire Cat again, who asks her how she is doing. The King of Hearts interrupts their conversation and attempts to bully the Cheshire Cat, who impudently dismisses the King. The King takes offense and arranges for the Cheshire Cats execution, but since the Cheshire Cat is now only a head floating in midair, no one can agree on how to behead it.
The Duchess approaches Alice and attempts to befriend her, but the Duchess makes Alice feel uneasy. The Queen of Hearts chases the Duchess off and tells Alice that she must visit the Mock Turtle to hear his story. The Queen of Hearts sends Alice with the Gryphon as her escort to meet the Mock Turtle. Alice shares her strange experiences with the Mock Turtle and the Gryphon, who listen sympathetically and comment on the strangeness of her adventures. After listening to the Mock Turtles story, they hear an announcement that a trial is about to begin, and the Gryphon brings Alice back to the croquet ground.
The Knave of Hearts stands trial for stealing the Queens tarts. The King of Hearts leads the proceedings, and various witnesses approach the stand to give evidence. The Mad Hatter and the Cook both give their testimony, but none of it makes any sense. The White Rabbit, acting as a herald, calls Alice to the witness stand. The King goes nowhere with his line of questioning, but takes encouragement when the White Rabbit provides new evidence in the form of a letter written by the Knave. The letter turns out to be a poem, which the King interprets as an admission of guilt on the part of the Knave. Alice believes the note to be nonsense and protests the Kings interpretation. The Queen becomes furious with Alice and orders her beheading, but Alice grows to a huge size and knocks over the Queens army of playing cards.
All of a sudden, Alice finds herself awake on her sisters lap, back at the riverbank. She tells her sister about her dream and goes inside for tea as her sister ponders Alices adventures.
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