The heroes are chased by a stegosaurus and end up trapped in a cave with the dinosaur outside. Sticking its head through the entrance it makes snapping motions and Sheila's comments about it wanting to eat them; suggesting stegosauruses in the Realm are carnivorous.
Unfortunately, orcs are also in the cave and capture the heroes, threatening to throw them into a bubbling lava pool. Presto casts a spell and summons a mystic whirlwind that teleports the heroes away leaving behind only him and Uni. The orcs, intimidated by the spell, have fled.
The teleported heroes appear in a giant vivarium and hearing a bestial noise flee, only to run into the glass wall which they think is a spell or a forcefield.
With the stegosaurus gone, Presto and Uni leave the cave and meet Dungeon Master who tells them that his friends face enormous danger in a far off land, and that he must climb to new heights of courage to help them, adding that first he must meet three strangers and lose something very important to him. Dungeon Master then disappears.
Meanwhile, in the vivarium the heroes are chased by a slime beast and break the glass to escape, only to find themselves in a giant's castle. The giant captures them, thinking they are there to steal his golden egg, and introduces them to the slime beast called Willy. He then lets them play a game of hide-and-eat where they have to hide in the castle and be eaten by Willy if found.
Meanwhile, Presto and Uni are in a town looking for the three strangers he has to meet and comes across an inn. Startled by a drunken punter Uni leaps through a window and is captured by a three-headed ogre. The ogre offers to trade Uni for three magic marbles but he refuses so instead he forces Presto to play the skull game where he has to guess which of three shuffled skulls a ball is under. If he wins he keeps the three magic marbles but if he loses the ogre keeps Uni. The ogre cheats and puts the ball in one of his mouths, saying that it is in a skull regardless. Presto is thrown out of the inn with the ogre throwing the three magic marbles after him, claiming that they're worthless.
Dejected, he throws the marbles away and a giant petrified tree grows from them. He is reluctant to climb the stairwell he finds inside it but a fleeing Uni pursued by the angry ogre changes his mind and once inside the stairwell the doorway seals, blocking the ogre from following. Inside they hear a dragonish cry and begin to climb the staircase that spirals upwards. presto considers going back but a frightening face with glowing eyes in the architecture dissuades him.
Meanwhile, in the castle the heroes emerge from the bristles of a giant broom from where they were hiding but are spotted by Willy. They try to escape out of a window but the slime beast grabs Bobby. Diana knocks Bobby free with her javelin while Hank fires an energy arrow at a bucket of water so that it is shunted beneath the barbarian to break his fall. A further energy arrow ricochets onto Bobby's club, hurling him back up onto the windowsill. Diana then knocks a lampshade off with her javelin so that it falls on the slime beast and traps it.
The giant arrives and grabs the heroes but the clock chimes nine and he releases Willy so that the slime beast can go fetch the laid golden egg. For amusement the giant places Sheila and Eric on a clockwork toy of two dragons battling each other but Bobby destroys it. Hank fires an energy arrow across a curtain rail so that the drape falls down and smothers the giant, allowing them to escape, although the enraged giant soon frees himself and chases them.
Through a window Presto and Uni spot an infant golden dragon hanging from a branch and go out to rescue it. Presto slips and with his hands preoccupied with hanging on he realises he cannot cast a spell with his hat. Uni grabs the hat from his head in her teeth and shakes it, mumbling something in her language. She conjures a flying carpet that transports them and the dragon back into the stairwell just before the branch breaks. With them safely inside the flying carpet disappears. The mother dragon appears, climbing up the stairwell, and breathes fire at Presto and Uni who flee upwards until they emerge outside the giant's castle. The mother dragon is about to roast Presto and Uni when she is distracted by Willy stealing a golden egg from her nest. The dragon pursues the slime beast and Presto and Uni hear Eric's alarmed cries from inside and go to help.
Inside Willy delivers the golden egg to the giant. Presto arrives and conjures a bird cage around Willy and reunited with his friends they flee the castle, snatching the golden egg from the giant as Presto has explained about the mother dragon. As Eric flees with the egg it hatches and he ends up carrying a baby golden dragon.
Fleeing down the stairwell they encounter the mother dragon, the infant dragon and return the baby dragon to her, with the mother adopting Eric also. The mother dragon is no longer hostile. Reaching the bottom Bobby smashes a hole through the sealed door and the heroes and the dragons escape, pursued by the giant who is climbing down the outside.
Presto casts a spell that shrinks the petrified tree into nothing, vanishing the giant with it. The mother dragon makes a nest in the rubble and Dungeon Master appears, congratulating them and saying that they had saved the last of the golden dragons, one of the few good species of dragons left in the Realm. The mother dragon, still keen to adopt Eric, drags him into her new nest.