Valerie is in love with the town woodcutter Peter, but her parents have arranged for her to marry Henry Lazar, son of the wealthy blacksmith Adrian Lazar. Valerie and Peter plan to run away together, only to learn that the Wolf has broken its truce not to prey on the townspeople in exchange for cattle stock sacrifices and has murdered Lucie, who is revealed to have had a crush on Henry Lazar.
Suzette learns of Peter and Valerie's love, telling Valerie she too did not love her husband at first, but learned to love him – that she had loved another. Father August, the local preacher, calls for the famous witch hunter, Father Solomon, to help them but the townspeople decide to venture into the Wolf's lair to destroy it. They divide into groups, with one consisting of Peter, Henry, and Adrian. Peter separates from them moments before the Wolf attacks and murders Adrian. However, it is cornered by the men and killed. Valerie finds Suzette mourning Adrian and figures out that he was her love. She also realizes that Lucie, being the older daughter, should've been the first to wed and should have been engaged to Henry, but could not as she was the illegitimate daughter of Adrian, making her Henry's half sister.
Believing Valerie to be a witch, Father Solomon has her captured and displayed at the town's square in order to lure the Wolf out so he can kill it. Henry and Peter join forces and help Valerie to escape. Peter is captured by the Captain and thrown into the elephant, while Father Solomon orders Henry to be killed for helping Valerie. Father Auguste saves Henry and is then killed by Father Solomon.
Suzette intervenes as Father Solomon prepares to sacrifice Valerie to The Wolf, trying to stop him and the townspeople from taking away her daughter, but wasn't able to do so, as she was dragged away by hunters.
Arriving at Grandmother's house, Valerie is horrified to find her dead, and learns that the Wolf is her father, Cesaire. He reveals that the curse was passed to him by his own father, and he intended to leave the village but wanted to take his children with him. He sent a note to Lucie pretending to be Henry to meet him at night so he could ask her to accept her "gift". However, upon confronting her, he couldn't communicate with her, and, realizing she was not his daughter, murdered her in a fit of rage. He then took revenge against Adrian, his wife's lover, and now wants Valerie to accept the curse.
Valerie refuses, just as Peter appears and confronts Cesaire, who bites Peter and tosses him aside. Peter is able to throw an axe into Cesaire's back, distracting him. Valerie stabs Cesaire to death with Father Solomon's hand. Valerie and Peter fill Cesaire's body with rocks so he can never be found and dumps the body in the lake. Peter departs in order to learn how to control his curse, vowing to return only when he's able to ensure Valerie's safety. Valerie narrates that Henry found his courage and honor protecting the village, her mother finally accepts that her husband will never come home, and the village continues to live in fear even though the wolf never returned. She then moves to her grandmother's house, leaving her old life behind.
- Both characters have been forced apart from their true loves in order "to have better lives".
- Both have had a child and/or children from their true loves.