Based on the novella The White Ship, by Kyrgyz writer Chingiz Aitmatov, Shambala tells the story of a lonely, impressionable, seven-year-old boy who lives in a protected forest, high in the mountains, with his grandfather, step-grandmother, auntie and uncle. He spends his time exploring and listening to legends from his grandfather, in particular tales about the sacred Mother Deer. The world of myths and folklore eventually conflict with the harsh reality of the world of adults, who are faced with their own personal problems and dilemmas.