Two siblings, Max and Emmy, find an enchanted dragon scale capable of transporting them to a whimsical fantasy land inhabited by colorful anthropomorphic dragons by reciting a rhyme. They befriend four friendly dragons Cassie, Ord, Zak, Wheezie and Quetzal.
Zak and Wheezie practice for tonight's concert hosted by Quetzal at Singing Springs, but they war over various songs they wanted to play and disturb the nap of a twelve-inch creature known eponymously as "The Giant of Nod". He desperately throws them in a tree trunk, so it's up to them to save the gang so they can make it to the concert.
Zak and Wheezie are having a sleepover, but Cassie is too homesick to go. Bringing something familiar from home helps, especially when she finds out how much fun sleepovers really are.
Ord wants to give his mother a very special birthday gift, so the Doodle Fairy draws a map to a meadow full of Giggle Flowers.
Cassie notices that all her friends have special talents except her, so she goes to the Talent Pool to finds a talent. However, the Pool turns out to be grumpy and refuses to give Cassie a talent.
A Purple Goo Cloud is going to rain all over Dragon Land, so everyone builds a tree house to shelter. However, Emmy becomes bossy and wants everything to be done her own way, until she learns how to share with her friends and give them what they want.
The friends embark on full sail to Rainbow Canyon, but Ord is too big for the boat and feels bad until he saves his friends from going out of a cave and over a waterfall.
