The Blue Light
Das blaue Licht (original)
Hans the farmer is drawn into war as a soldier. Returning from the front, having been defrauded of his pay by his own king, he makes his way home. On his trip, he encounters a witch who asks him to fetch the light from a spring. He keeps it when the witch tries to deceive him and he discovers her foul magic. When the light is ignited, a little man appears who must serve the owner of the light, but it only has power if the owner has faith in himself. His courage bolstered, Hans goes to the king once more to demand his wages be paid.
Starring Viktor Semyonov, Blanche Kommerell, Katharina Thalbach, Fred Delmare, Helmut Straßburger, Marylu Poolman, Christa Löser, Jaecki Schwarz, Günter Schubert, Carl Heinz Choynski
Watch "The Blue Light" on Kanopy released in 1976. It's a fantasy and action & adventure movie, and has a rating of 6.8 out of 10 from Imdb which is usually fine for this kind of movie.