Kobutori (1929)

In Kobu-Tori, an old man with a lump growing on his face takes refuge in a hollow tree during a thunderstorm. When he awakens, he finds the forest populated by mythic creatures. He dances with the sprites and as a reward, the creatures remove his deformity. Back in the village, he tells another man who has a similar growth on his face. Will the creatures bestow the same boon upon this other man?

(Source: 100 Years of Movies)