While Headmaster Mordred is trying to impress a new student, who he believes to be the first female at Dragon Slayers' Academy, the ghost of one of the school's founders besieges the halls seeking his stolen gold.
A ransom note received at Dragon Slayers' Academy sends Wiglaf and Angus to the rescue of the supposed victims, but upon arriving at Keep Away Mountain Cave, they discover that an elaborate prank has put them in danger.
When a wizard's spell goes awry and turns Wiglaf and his friends, Angus and Eric, into dragons, they spend a few days at Dragon Slackers Academy--a school for dragons with bad attitudes.
Wiglaf faces the double embarrassment of having his wacky parents visit Dragon Slayers' Academy on Parents Day and starring in the school play as the brave but small knight, Sir Tinybottom.
While Wiglaf and his friends search for their dragon, Worm, DSA's money-hungry headmaster, Mordred, is turning the school into a casino, rushing all of the students through graduation and out on their own.