The Dragon That Wasn’t (Or Was He?)

During a raging storm, Yost the servant dog reads a book claiming that dragons cause storms. He wakes his employer, Ollie the bear, hoping to prove the claim. Ollie tries to disprove dragons, but Yost remains convinced and resolves to gather evidence.

Yost shows Ollie the book and a dragon calling spell from it. Ollie reads the spell; a gust of wind flings curtains toward them and a dragon slips by the window unseen. The seed of belief takes root in Ollie's mind.

After the storm, they find dragon tracks around the house and Yost searches for more clues. He visits their neighbor Kit Cat to consult her about dragons. Kit Cat, who has her own dragon leaning, suggests that if she laid an egg she'd leave via the back path behind the gardens.

The trio searches the forest for more evidence to convince Ollie. They discover a mysterious spherical object and bring it back to Ollie, who misidentifies it as a beach ball. The object becomes a turning point, hinting at a dragon's true existence.

The next morning, the spherical object rolls to Ollie's fountain and hatches into a baby dragon. Dexter immediately shows affection for Ollie, who is astonished but accepts the dragon as real. Kit Cat notes that the dragon believes Ollie is his father since he was the first thing the dragon saw.

Ollie names the dragon Dexter after his great grandfather. A rumor spreads through town that Ollie laid an egg, as reports travel from the grocer to Mayor Dickerdack to the newspaper editor and beyond. The growing gossip alters how the town views Ollie and his dragon companion.

Kit Cat's warning that dragons hate baths leads to a bath attempt that goes wrong when Dexter grows large and becomes aggressive. Yost and Mr. Waddle try to intervene, but Ollie initially discounts the danger. Dexter returns to normal size as the bath ends, leaving Ollie unsure what to believe.

Before the banquet, Ollie puts Dexter to bed, but the dragon begins gathering toys and other items into a pillow case, hinting at a growing hoard. The looming party becomes a stage for potential trouble as Dexter gravitates toward the guests' music and food. Kit Cat keeps vigil, hoping to avert disaster.

During the banquet, two gangsters posing as doormen attempt to steal guests' belongings. Dexter, drawn by the festivities, starts causing a scene and shaking out items they couldn't steal. Kit Cat reads about dragon vulnerabilities and urges Ollie to take control, but he initially resists believing Dexter is still just a child.

The local physician recommends checking Dexter at the hospital to address his growing pains. The police chief insists Ollie accompany Dex and Kit Cat insists on joining. That afternoon, the gangsters kidnap Dexter and force him to rob the town bank, prompting Ollie to intervene but being grabbed and dragged into the hills.

Ollie wakes up alone in a cave with Dexter missing and Kit Cat arriving to urge sending Dexter back to his dragon kin over the Misty Mountains. Ollie remains stubborn, still contemplating his bond with Dexter despite the dragon’s real nature being increasingly evident.

Mayor Dickerdack arranges to capture Dexter and hand him to the circus, arguing it's for the dragon's own good. Dexter breaks into the jail to rescue Ollie, which leads Ollie to admit he can't be the dragon's father anymore. Dexter shrinks to hatchling size and the authorities relocate him.

Dexter is kept in a circus cage, but when Ollie arrives with Yost, the act is halted. The gangsters push Dexter to perform; Ollie fires his blunderbuss, causing chaos and triggering Dexter to grow again. Dexter defeats the criminals by destroying the money, ending their scheme, and carries Ollie away to the hills.

Dexter sees the call of his true kind and decides to return to the mountains, waving goodbye to Ollie. Ollie forgives himself for his earlier misjudgments and accepts that dragons are real. He reassures the town that Dexter is now safe with his dragon kin.

Back at the town table, Ollie, Yost, and friends toast to Dexter and the dragons, acknowledging the truth of the legend. A final dragon call echoes from the mountains, scaring Yost while Ollie believes it's Dexter saying goodbye. Mr. Waddles heads for the mountains with a net, hoping to catch a dragon of his own.