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The film introduces a flashback featuring Stanley's great-grandfather, who once possessed a fortune until he was betrayed by a woman named Kissin' Kate Barlow. This betrayal sets off a chain of misfortunes for the Yelnats family, resulting in a curse from Madame Zaroni, a fortune teller who warned Stanley's ancestor to carry her up a mountain if he wished to succeed.
As the story unfolds, Stanley forms bonds with his fellow inmates, each with unique nicknames reflective of their personalities. Among them is Zero, a quiet boy with an inexplicable connection to Stanley’s family history. Zero's request for Stanley to teach him to read acts as a catalyst for both characters’ development and highlights the theme of friendship amid adversity.