The film opens with Naruto Uzumaki, Sakura Haruno and Sasuke Uchiha watching a film starring Yukie Fujikaze, in a local cinema. Kakashi Hatake has summoned them to watch it as preparation for their next mission: to prevent Yukie, who plays Princess Gale in the films, from being captured during production of her latest film. Yukie is later revealed to be Koyuki Kazahana, a princess from an island known as the Land of Snow. Doto Kazahana, who is revealed to be Koyuki's uncle, was responsible for the murder of her father Sosetsu in a coup d'etat. During the shooting of the film, Doto's henchmen, wearing Chakra armor, attempt to capture the princess, but Team 7 manages to delay the princess from being captured. Doto eventually captures Koyuki and kills her bodyguards, who reveal themselves in an attempt to protect and restore her rightful place as the ruler of the Land of Snow. Naruto enters the ship to rescue the princess, only to be captured and forced to wear a chakra-draining device. Doto forces Koyuki to hand over a crystal necklace her father had given her when she was young, thinking that this is a key that can unlock the hidden treasure Sosetsu had left behind before detaining both Koyuki and Naruto.
Sakura, Sasuke and Kakashi infiltrate the fortress while Naruto and Koyuki escape from captivity. They confront Doto but he manages to capture the crystal necklace and flees with Koyuki. Naruto proceeds to follow Doto while the remaining members of Team 7 confront Doto's henchmen. Kakashi gets his revenge by defeating Doto's henchman Nadare Roga, while Sakura and Sasuke defeat the other two henchmen Fubuki Kakuyoku and Mizore Fuyukuma. Meanwhile, Doto discovers the hidden treasure to transform the island into the Land of Spring using a heat generator. Naruto confronts him in a duel, but gets overpowered while Sasuke uses his Chidori to weaken Doto Soon after, Naruto releases his energy and uses his new Seven Colored Rasengan, killing Doto and activating a mirror to transform the land. At the end of the film, Koyuki decides to reclaim her rightful place of royalty and even mentions personally with Team 7 that even in the life of royalty, her acting career will not end.