Bone, Gran'ma Ben and Thorn have a terrifying encounter with Kingdok, ruler of the rat creatures. The Hooded One is inciting his army to full-scale war. Someone is continuing to haunt Thorn in her dreams. And then wise Gran'ma Ben disappears.
To make matters worse, Phoney Bone has hoodwinked the townspeople into believing that he is a mighty dragonslayer. When he actually does catch the Red Dragon - much to his surprise - he must face up to his promise: to slay the dragon at sunrise.