Cal and his best friend, the tactless but loyal Soy, learn that the frog (who prefers the name Deli) has sought them out for a reason. When a school administrator named Ream reveals himself to be a dragon, the boys discover that fairytales are real, and that there is magic afoot in Stagwood. With Ream on their tail, the trio must unearth a powerful tool protected by riddles and rile (the magic that fuels nightmares) to save the fate of all fairytales past. Their only means on conveyance, Cal's now-flying bed, takes them on a journey beyond the home of the fairies (a cloud floating somewhere over Iceland) to set things right. But, before Cal can defeat Ream and his kidnapped army of fairies, he has to deal with Soy's knack for arguing with magical creatures, discover the truth about Deli's identity, and earn his place as the hero of the story.