The film begins on a foggy morning out on the open sea. A ship then comes from the fog, filled with sailors singing stories of the legendary merfolk. ("Fathoms Below") Aboard that ship is a young prince, named Eric, his dog Max, and his advisor Grimsby. Grimsby denounces the merfolk as, "nautical nonsense," but one sailor insists them to be real. While distracted by Grimsby, a fish the sailor was holding slips from him and falls into the ocean.
