In the early 1920s, a new school year begins in a small Bosnian village beneath the mountain Grmec. For two young boys, Baja and Ike, it is the end of their childhood and times spent listening to their grandpa's stories about bandits. The first day of school begins well for the two boys, especially for Baja who meets a girl, Veja, a refugee from Lika. However, another boy from the school, Joja, spoils the day and Baja and Ike's relatives, the seven Raseta brothers, have to defend them. Moreover, all the villagers have problems with the gendarmerie, who take food and cattle from all those who cannot afford to pay the high taxes. A group of friendly bandits arrives to the village, returning the gendarmeries' loot to the people. When the bandits flee to the hills, the Raseta brothers disappear with them. The gendarmerie calls up reinforcement and organizes a posse to track down the bandits. The kids, Baja, Ike and Veja believe Joja's story that their relatives joined the bandits and...
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Dvadesetih godina proslog stoljeca, u malom bosanskom selu podno Grmeca, zapocinje skolska godina. Za djecake Baju i Iketu to je kraj bezbriznog djetinjstva i slusanja djedovih prica o hajduckim podvizima. Prvi dan u skoli, medjutim, ne zapocinje strasno, pogotovo sto se izmedju Baje i Veje, pridoslice iz Like, razvije simpatija. Dan pokvari dugacki djecak Joja, pa Baju i Iketa moraju uzeti u zastitu njihovi rodjaci, sedmoro brace Raseta. Jos vecu nevolju stvaraju zandari, uzimajuci hranu i stoku od seljaka koji zbog slabog uroda nisu mogli platiti porez. Stizu hajduci, plijen od zandara vrate seljacima i vrate se u brda, a zajedno s njima nestala su i braca Raseta. Zandarima stize pojacanje i za hajducima se organizira potjera. Baja i Iketa povjeruju u Jojinu pricu da su se Rasete odmetnuli u hajduke i polaze ih traziti. Njima se pridruzuje i Veja.