Eisenheim is a magician in early 1900's Vienna, who falls in love with a woman well above his social standing. When she becomes engaged to a Crown Prince, Eisenheim uses his powers to free her and undermine the stability of the royal house of Vienna.

Although the story is fictional, some of the details are based on the life of Austrian Crown Prince Rudolf, only son of Emperor Franz Josef. The painting of the emperor which Eisenheim creates is an actual portrait of Franz Josef. The bodies of Rudolf and his mistress, the Baroness Mary Vetsera, were found at his hunting lodge Mayerling on January 30, 1889 in what is now known as the "Mayerling Incident". This was initially covered up by the Imperial Family, creating controversy and mystery.

Eisenheim:
Everything you have seen here has been an illusion.

Boom mic visible: Near the end of the film, Chief Inspector Uhl is in Prince Leopold's office. In the close-up scene when the two argue, you can clearly view the boom mic, going from one character to the other, in the reflection on the brass table lamp.