The Watermill is looking east: the very English riverside setting of last year’s Wind in the Willows has been replaced this Christmas by the sparkling green, onion-shaped domes of an oriental palace. Within live King Dara Al-Saeed and his bride Princess Cyra. It’s no fun for her – she’s kept locked up, and the only way she can save her life is by telling the king a story that makes him laugh.

There are plenty of stories to choose from: Arabian Nights, also known as 1001 Nights, is a vast collection of tales going back centuries. At the Watermill, writer Toby Hulse, unfolds his own selection, including a wondrous impression of 1001 soldiers charging into battle, to be defeated by just one man – not even Spamalot can beat this one. There’s the tale of a fisherman: “I’m rubbish at it,” he declares, during a comedy routine that went down very well at the schools matinée I attended. Among other stories, there’s a horse that flies, an ugly tortoise who turns into a beautiful woman, and the immortal tale of the magic lamp.

The sparky Princess (Amanda Wilkin) certainly tries hard with her storytelling, but the king (Tarek Merchant) remains stony-faced. He’s a glass-half-empty sort of guy, amused by nothing – unlike the Watermill audience, which greatly enjoyed fruity references to sweaty armpits, raspberries, and belly dancers with wiggly hips and wobbly bottoms. But, at last, the king’s lips begin to twitch….

Backed by a uniformly strong ensemble cast, Robin Belfield directs a well-paced production that’s full of good, old-fashioned stagecraft – no digital effects here. Perhaps there could be more audience interaction in the first half, but there’s plenty to engage young imaginations nonetheless, plus catchy ballads (Simon Slater) between the stories.

FOUR STARS Until January 6 Box office: 01635 46044 or watermill.org.uk