In an effort to outdo his competition, Dirk the Daring gives Princess Daphne a golden bird for her birthday. The bird, however, is enchanted and kidnaps the princess, delivering her to Cinge the Dragon.
Old Alf the magician chooses Daphne as his new apprentice, but her impetuous use of magic brings the wrath of Cinge the Dragon down on Ethelred and his kingdom. Dirk must battle the dragon to restore order to the kingdom.