Teenager Sarah (Jennifer Connelly) is babysitting her brother Toby (Toby Froud) and while telling him a story from her "Labyrinth" book she conjures up the fantasy world of evil Jareth the Goblin King (David Bowie). In a moment of resentment she says, "I wish the goblins would come and take you away...right now." Jareth kidnaps him to his castle in the middle of an enormous ornate labyrinth. An owl flies in the window, transforms into Jareth, and tells Sarah, "You have thirteen hours in which to solve the labyrinth, before your baby brother becomes one of us...forever."
Sarah goes through the complex labyrinth and she encounters many adventures similar to "Alice in Wonderland" and "The Wizard of Oz". There is the Bog of Eternal Stench and other dangers, as well as an assortment of outrageous Muppet characters created by Jim Henson. Hoggle (Shari Weiser), an interesting, unappealing character spends a lot of time with Sarah and he turns out to be a spy. Jareth tells Hoggle, "If she ever kisses you, I'll turn you into a prince...Prince of the Land of Stench!"
Sir Didymus (David Alan Barclay) is a chivalrous fox knight who rides sheepdog Ambrosius. Ludo (Ron Mueck) is a gentle beast Sarah rescues from the King's men. There are also snails with Cockney accents, talking door knockers, living cannonballs, and amazing goblins. In one magic fantasy, Sarah attends a ball with goblins in a bubble. She looks for Jareth, who tries to seduce her in a slow-motion dance, but fails.
Sarah: "Ow! It bit me!"
Hoggle: "What'd you expect fairies to do?"
Sarah: "I thought they did nice things, like granting wishes."
Hoggle: "Shows what you know, don't it?"
Sarah: "What exactly have you sworn?"
Didymus: "I have taken an oath that no one may cross this bridge without my permission."
Sarah: "Well... May we have your permission?"
Didymus: "Well I, uh... I... that is, uh... hm... Yes?"
Eventually she reaches the gravity-defying castle. Jareth tells her, "Everything that you wanted I have done. You asked that the child be taken. I took him. You cowered before me and I was frightening. I have reorded time. I have turned the world upside down. And I have done it all for you! I am exhausted from living up to your expectations. Isn't that generous?" Sarah saves Toby by telling him, " Give me the child. Through dangers untold and hardships unnumbered, I have fought my way here to the castle beyond the Goblin City to take back the child that you have stolen, for my will is as strong as yours, and my kingdom is as great. You have no power over me".
The room dissolves and Sarah and Toby are instantly back home. Hoggle, Ludo, and Sir Didymus appear as images in the mirror and tell her they will be available "should you need us". The Labyrinth creatures celebrate Sarah's refusal to give up her imagination and outside Jareth the owl watches the party then flies away.
The cast also includes: Shelley Thompson (stepmother), Christopher Malcolm (father), Natalie Finland (fairy), Rob Mills (Firey 3), Dave Goelz (Guard), David Shaughnessy (The Hat), Karen Prell (The Worm), Frank Oz (Wiseman), Steve Whitmire (Firey 4), Kevin Clash (Firey 1), Ian Thom (Fiery 2), Anthony Asbury (Firey 5), and many others. The writing credits are Dennis Lee, Jim Henson, Terry Jones, and Elaine May. George Lucas was an executive producer and Trevor Jones wrote the music. The film was shot on location in New York and at Elstree Studios in Britain. With a budget of $25 million, it grossed only $12 million. This was the last feature film directed by Jim Henson.
LABYRINTH is a charming, imaginative and dazzling adventure, an underrated classic that is perhaps better than NEVERENDING STORY (1984). The set design is outstanding and it's refreshing to watch an impressive fantasy that was not computer generated. Bowie and Connelly are both very good in their roles and the puppets come to life. It is suitable for children of all ages and adults who enjoy fantasy and sci-fi. But it is bizarre, colourful and dark at the same time, and occasionally tediously slow. Some people dislike the music. The special effects are very good, and there are lessons conveyed, such as "be careful what you wish for".