A tavern on Pyatnitskaya street is a meeting place for all kind of criminals. The only way for police to infiltrate the criminals is to send an undercover agent to the tavern.

A copying error by a military scribe turns the Russian words "the lieutenants, however" into what looks like "lieutenant Kizhe". The Tsar reads the error, and wants to meet this (non-existent) lieutenant. The courtiers, eager to avoid the wrath of the temperamental Tsar, create a Kizhe to serve as their royal scapegoat.