Three children, a gnome, a tall man, a Goblin and his three children go on an adventure to find a Dragon's egg before the large snakes called Hissers get their hands on it. Until the egg hatches it had magical properties. Their journey is long, through swamps, forest, desert and mountains. They run into many perils, these include the Hissers, Beetles, Flies, a giant Scorpion and Bats. They trudge a route through dark caves in the mountain until they reach the top where they meet a strange stone man who help them meet the fierce red Dragon in her cave. With the help of the stone people and the Fairy Guardian of the Grotto they manage to save the Dragon's egg.