Mendanbar, the King of the Enchanted Forest, plays hooky one day and goes for a stroll to the Green Glass pool. He finds a section of the forest destroyed – apparently by dragons. Perturbed, Mendanbar visits Morwen for advice. Morwen counsels him to pay a visit to Kazul, the King of the Dragons. So Mendanbar retrieves his magical sword from the castle armory, and sets out for the Mountains of Morning – but not before he is paid a suspicious visit by Zemenar, the Head Wizard of the Society of Wizards.

Mendanbar journeys to the cave of the King of the Dragons, only to find her away on a diplomatic trip. But he does meet Princess Cimorene (Dealing with Dragons), now Kazul's Chief Cook and Librarian. Cimorene admits that Kazul has been missing for days, and that she plans to go out in search of her. Mendanbar insists on accompanying the princess, with whom he finds himself very much taken.

The two set out in search of the missing Kazul. On the way, they visit two wacky giants, contend with a defective magic carpet, and help out a well-meaning but financially-broke dwarf with a brood of royal children. But there is danger on their trail – for, once out of the Enchanted Forest, Mendanbar's magical sword starts leaking magic, attracting the attention of a horde of greedy wizards as well as an overly-inquisitive magician. And, as Mendanbar and Cimorene continue on their rescue mission, it becomes clear that Kazul's disappearance is linked with the Enchanted Forest. The Society of Wizards has invented a powerful new spell – and Mendanbar's sword may be the key.