Felix Baum is a 12-year-old Austrian Jewish boy who is accompanying his father, Josef Baum, on a business trip in Sarajevo, on June 28, 1914. They witness Archduke Franz Ferdinand parade through the streets in his car, and Felix feels uneasy about the unhappy-looking crowds. His father explains to him that the Bosnians are resentful about being conquered by the Austro-Hungarian Empire. As they talk, a man throws a grenade into the archduke’s car, but the archduke knocks it away, and it explodes on the car behind. Felix is shocked and his father, a former soldier, goes to help the wounded. Later, while Josef buys his son some pastries to cheer him up, the archduke’s car appears again. This time, a man walks directly up to it and shoots the archduke. After the commotion, Felix and Josef decide to catch a train home.

Felix is back at home in the then-Austrian city of Lemberg, where he lives with his parents. The Baums are hosting the Dresslers, a German family, for dinner. Herr Dressler is a major in the German army, and his daughter Elsa is a talkative 12-year-old who tries to befriend Felix. Felix, however, prefers to stay with the adults and talk about the possible upcoming war, which he is very worried about.