There are more troubles in Spooksville. A dragon has appeared out of nowhere and it is looking for its treasure. In fact, it intends to destroy the entire town unless its jewels and gold are returned immediately. The only trouble is that Adam and his friends don't know where this treasure is. Worse, the creature is rather hotheaded and won't listen to reason. It is a fire-breathing dragon, and soon it is laying waste to all that stands in its way. Even kids -- it doesn't mind burning them to ash. Soon Adam and his friends are fighting for their lives.