Valerie (Amanda Seyfried) is a young woman that lives in a village called Daggerhorn. She is in love with a outsider woodsman, Peter (Shiloh Fernandez), but her parents, Cesaire (Billy Burke) and Suzette (Virginia Madsen) have offered her to marry Henry Lazar (Max Irons) in order to pay a debt that Cesaire has with Henry's father, the wealthy Adrian Lazar (Michael Shanks). In order to stay together, Valerie and Peter plan to run away to Valerie's grandmother's (Julie Christie) house, but their plans are interrupted when Valerie's sister is found slaughtered.
For years, the townspeople have been tormented by a Wolfman that preys on them from the woods. In order to stop the Wolfman from coming into town, they offer it a monthly sacrifice of animals. However, the creature has changed their deal and taken a human life. The one of Valerie's sister. No longer safe from the beast, the townspeople hire Father Solomon (Gary Oldman), a famous Witch Hunter, to slay the monster. Father Solomon is quick to point out that the Wolfman is nothing but a cursed human being and, thus, anyone on the village could be the creature. However, when the monster attacks again, it becomes obvious that it shares a connection with Valerie. Telling her that he'll leave Daggerhorn alone if she runs away with him, because, much like him, Valerie is also a wild spirit trapped in a conservative form.
Forced to act as a bait to lure the Wolfman out of the woods by Father Solomon, Valerie witnesses another attack and ultimately decides to retreat to her Grandmother's house alone only to discover that not only the Wolfman has devoured her, but also that it is her father, Cesaire, who has fought against his urges for many years, but has finally been overwhelmed by the beast. Valerie is rescued by Peter and the two are allowed by Henry to elope. Meanwhile, Father Solomon, who has survived an attack by the Wolfman, is discovered to have been bitten by Father August (Lukas Haas). Having previously murdered Father August's brother, who was also bitten, under the stress that "A man bitten is a man cursed", Father Solomon is murdered by Father August, who repeats the same words to him, despite Father Solomon's claims that he only hid his curse to protect his infant daughter (Yolande Hattingh).
The Wolfman has four eyes, extra limbs, stands on two legs and maintains his inteligence while transforming, speaking perfect english.
At one point, Valerie has a dream where she is in her grandmother's house, unaware that the Wolfman is disguised as her. That's where the classic "My, what big eyes you have..." scene takes place.
Father Solomon is introduced early on the beginning to the 2° Act and is killed in the beginning of the 3° Act. He is in it very briefly, but its still the coolest character.