When a dragon wearing very large underwear threatens the kingdom the Knights of the Round Table run away, leaving Sir Percival's young assistant, Cole, to face the beast.
A dragon finds an abandoned egg and lovingly raises the hatchling as her own, although Little One is very different from the baby dragons, and when disaster strikes it is the small, feathered hatchling that saves the day.
After realizing that the Underwear Dragon misbehaves only because he cannot read, Sir Cole and his would-be assistant, Claire, are determined to help the fearsome beast.