Kutaro is a normal small boy of 8, whom was just sleeping in his bed when the Moon Bear King stole his soul and placed it in a wooden puppet body. It is unknown what his life is like prior to Puppeteer, except he lives in Japan and he carried a tune.
One night, during the Moon Bear King's reign, a 8-year-old Kutaro became the latest of the unlucky children to have their souls stolen, brought to the Moon Realm and trapped in a wooden body. To make matters worse, after the King called a scared Kutaro's lie to be his friend, his head was ripped off, and eaten, while his body was cast into the dungeons. He would have been a goner had it not been assistance of a certain apathetic cat: Ying-Yang. After getting two new heads and escaping the dungeon and his cell, Kutaro and Ying-Yang entered the kitchen where, while Pikarina the Sun Princess had been kidnapped by the Moon Bear King and his grubs, the mysterious Moon Witch Ezma Potts assigned Kutaro to fetch the magic scissors, Calibrus, from the Bear Tyrant's throne room, at the top of the Tower of Tribulation.
After climbing the Tower of Tribulation, Kutaro saw the Moon Bear King with a pixiefied-Pikarina held captive in his clutches and General Tiger next to him though the giant door, which would be locked if the grubs from earlier and Moon Bear King didn't open it (off screen). After the Moon Bear King left with Pikarina to put her in a pixie sized cage (off screen), Kutaro made his way into the room, to see Calibrus being bound by Vile Vines, the by-product of the Tyrant's dark magic. "Step forward, boy, and take your destiny in hand" Calibrus called out, and Kutaro did just that, through one touch, he shrank and changed to suit Kutaro and his pure heart, freeing him from the Vile Vines in the process.
He accidentally triggered the security system in the process, but our young hero, had snipped his way out, scissored like a true wizard. But this awaken an image of the Moon Bear King, who sicked his Grubs on him, but with Calibrus in hand, Kutaro managed to free the souls within. Then the Moon Bear King thought of doing it himself and turned into a Weaver. The Pawn Weaver to be exact.
Kutaro fought off the monster, for even if he was scared of it, he had to face his fears to stop it. With his first weaver gone, Kutaro ran away, like any frightened child would, so the "Grizz" wouldn't find and kill him. The Moon Bear King sent his "bodyguard", and second in command of the grubs, General Tiger, along with the grubs themselves to track down and stop Kutaro. Ying-Yang insisted they head up to the Moon Witch, but after Kutaro cowardly refused, our favorite lazy Moon cat dragged Kutaro to the Moon Witch's kitchen, much to our puppet hero's dismay and fear.
With Calibrus and the Moon witch as Kutaro's only hope to get him back home to Earth alive, our hero made it out of the Moon Bear King's throne room, then the Tower of Tribulation, finally at the Witch's kitchen, much to her joy. Ezma Potts stated that with the magic shears he could cut the "Grizz" down to size and set the Moon realm free! But as she tried to take Calibrus, the magic scissors flew Kutaro and Ezma Potts out of the window causing Ezma Potts to chase after Kutaro and Calibrus.
While this was happening, Ying-Yang explained to her that she needs a pure heart, like the Moon Goddess, or magic as pernicious as the M.B.K., to wield Calibrus, stating she has none, just a bad attitude. She slammed her face on a roof and fell to the ground, followed by Ying-Yang and Kutaro who was floating down thanks to the sentinel Calibrus, but the Moon Witch caught him, telling him to take care of Calibrus for her, (ironically Calirbrus does not belong to her, it belongs to Kutaro).
General revealed himself to our heroes smelling the "pungent stink of a scissors thief", tracking him down but Ezma Potts tricked him into thinking she never saw him and he's not here, making Tiger also think he actually smelled witch stink, while the poor puppet got under the witch's dress to hide. Tiger ordered he grubs to have the castle locked down. It was a long time (possibly lasted three hours Pikarina was held captive), during that time, Kutaro peaked his random puppet head (depending on what head it was) out to see if it was over, only to see the Grubs and a sleeping General Tiger was still there. Ezma Potts and Ying-Yang were sleeping too. So Kutaro went back into the dress.
Tiger, Ezma and Yin Yang got up, then the General accidentally told our hero and team the location of the Knight's Power in the Prison Towers, and the Moon Witch kicked Kutaro up to the Towers to "get his hiney in gear!" With the help of calibrus, Kutaro snipped the the vile vines and flags to climb up the towers. As Kutaro climbs the towers, another Pawn Weaver tried to attacked him, but he manage to get past it's attacks, and landed where the Knight's power is hidden only to be ambushed by said pawn weaver, which turned into the Knight Weaver.
Our hapless puppet hero cut though vile vines to cut the weaver's cape and armor, to fight it. Eventually, his second weaver was gone for good, and Kutaro and Ying-Yang had finally found the Knight's power, which was a shield. Meanwhile the Moon Bear King knew he was heading to the Knight's shield, so he sent Tiger to make sure Kutaro doesn't escape with the Knight's Shield and the Sun Princess. If Tiger failed, he would ripped his Moonstone Shard right out of his mouth. As he climbed to find the puppet, General Tiger wondered who "the idiot who blabbed about the Knight to in front of......" then suddenly, he figured out it was him! Now enraged by this, the General started pursuing our little hero.
As Ying Yang told our hapless puppet how the Knight lost to the Moon Bear king and his soul trapped in his shield. Kutaro found the Knight's shield, which is the knight's power. Ying-Yang accidentally triggered the web trap by touching the shield, but Kutaro snipped the web and freed the Knight's Shield, which Kutaro claimed. Ezma Potts trained our hero with using the Knight's Shield, which Kutaro uses pretty well, much to her amusement. She then tells him to give the shield some rest when it wears out, and teleports out leaving a portal for him and his cat sidekick.
Not every puppet had Kutaro's luck, for the three whom our hero met om the kitchen earlier, Wynken, Blynken, and Nod tried to escape, but the eldest, Wynken had his head chopped off (and had been juggling it to try to get it on his body), by a giant guillotine. Kutaro came across said giant guillotine and found it's weakness, it's eye. The eye shoots at him but our hero blocked it with his new magic shield, three times until the machine was destroyed. Giving our hero the a new head and a portal to the next floor to escape the castle.
On the next floor our hero and our favorite lazy moon cat find the next portal, but it's behind bars, and the security system, which was installed a week before Kutaro's capture. The beams attack but he used his shield to defend against all five of them. If Kutaro used the Nod head he had gotten during the battle with the guillotine, the boys whom he saved from the guillotine, Wnyken, Blynken, and Nod, will help Kutaro by pushing three of the beams while our hero took out the last two. After that, the bars lifted and the portal was now of used of Kutaro and Ying-Yang.
As our heroes teleport to the next part of the castle, Kutaro got a grim feeling something grim and terrible will happen. As it turn, out Tiger caught up with them. He sends out grubs to attack our hero but he used Calibrus and the knight's shield to fend off and defeat the grubs, freeing the souls which will then returned to Earth in the process. Tiger tried to attack Kutaro with his paw, but the puppet used the shield to defend himself, causing pain to the General's paw. Then Calibrus had magic pouring out of him and Kutaro stab the Tiger with it. General Tiger left saying "I'll get you for this, mark my words!" meaning he will be back.
Then Kutaro and Yin Yang entered a portal that appeared and were finally at the top of the Prison Towers. Yin Yang wondered where the next gate way was, but then Kutaro and Yin Yang heard a cry for help coming from the imprisoned Sun Princess. Ying-Yang realizes the Sun Princess is being held here, and Kutaro decides to rescue her. As he reflected the foul flowers' light, hitting them in the process and cutting the vile vines' leaves and repeating with the other vile vines leaves and foul flowers, Kutaro had a fiery feeling inside him.
Was it the Knight's soul, or something else stirring? He must have grown a fond of her, and his sense of chivalry would not leave the princess behind, because a fire burned within Kutaro's heart, and he knew it was his duty to save the princess, much to Ying Yang's annoyance, and reluctance and his deadpan "Just what is it about damsels?" quoting a stereotype "Damsel in Distress". The Sun Princess saw Kutaro, questioning if he was her "knight in shining armor" yelling at him to get her out of here. Ying-Yang mistook her "pixie form" for a "lady-in-waiting" which disheartens Kutaro, but his sence of chivary, would not let the "lady" behind. So he finally came to the very top of the where he had to reflect magical lights from two more foul flowers, and then freed the princess.
The Sun Princess Pikarina thought he was like a hero, questing to save the princess, which is why he has Calibrus and the Knight Shield, and despite him not meeting her "standards of a hero" which were Kutaro not being three feet too short and three hours to late, she thanks him and has grown somewhat fond of the puppet boy, and thanks him for rescuing her.
But this chance encounter was cut short as General Tiger ate the pint-size pixie sun princess. Then Ying- Yang showed Kutaro the Moon Stone in the fangs of his mouth. The tiger attacks but Kutaro dodges those attacks, while using Calibrus and the Knight shield to battle our favorite predator. If Kutaro uses the Pikarina head, you will see Pikarina is alive and attacks General Tiger while in his stomach which causes the QTE to commence. Kutaro doges his claws and cuts them, stabs the Tiger's oversized paw, and just when the General had him in his mouth, Kutaro cuts his teeth out, one by one in full scissors force, then knocking him out cold, causing the "pixie" to escape grossed out and enraged.
Kutaro and Ying-Yang finally found the head of General Tiger, where it's being picked up and dropped violently by the "pixie", whom thanks Kutaro, Ying-Yang introduced Kutaro to her and the "pixie lady-in-waiting" introduced herself as Pikarina, whom dropped the tiger's head one more time, causing the unconscious tiger to drop his Moonstone Shard out of his mouth and Kutaro claimed his first Moonstone Shard.
Ezma Potts came and congratuate Kutaro on defeating General Tiger and getting the first Moon Stone Shard, but starts arguing with Pikarina, as Kutaro and Yin-Yang looked at each other never knowing if the rude meeting between the Princess and the Witch would be short or long, but just as the witch was about to say something, the Moon Bear roared so loud that the very ground was shaking, causing the misfit band to flee the dark castle. With the MooN Bear King chasing after the four, Kutaro and gang had escaped, as they flew out to safety (Ezma Potts, Ying-Ying and Pikarina flew, Kutaro was haning on Ezma's Feisty Fork).
With nowhere else to go, the misfit foursome heads off to the old sanctum of the Moon Goddess, Castle Wax Wane. There, they set it as their base, and while Ezma Potts was arguing with Pikarina, Kutaro dodges debris Ezma Potts threw at him. While Pikarina explains her distrust for Ezma, the Mooonwitch goes on to explains how by reassembling the White Moonstone pieces will restore the missing Moon Goddess. With that, she sent Kutaro headfirst into the Moonwood to search for General Rat, with Pikarina tagging along with our puppet hero.