In the Sicily of the late 1940s, two brother sculptors, tired of selling madonnas to the local churches, finally realize their dream, and set up a Sicilian production company, thanks to the help of a local bishop. They start producing one box-office failure Z-movie after the other, all with terribly bad local non-pros as actors. Covered in debts, they finally have their great chance, when a local nobleman obsessed by magic decides to invest all his wealth in the making of a movie about Cagliostro, just one year after Orson Welles' Black Magic (1949). They hire a famous American actor (Robert Englund) and start shooting "The Return of Cagliostro".

The film has three stories. First is about local village idiot Paletta, who can not afford the services of a whore and so steals a locket from a holy shrine belonging to local mafia don. Second shows the story of betrayal of Pitrinu (who's dead now) by his lover Fefe. Final episode is about lowlife Lazarus. He is killed by mob boss Toto, but raised from the dead by a local messiah, who is also known as Toto (and is played by same actor).