Stella crowns herself queen of a seaside kingdom and bestows knighthoods on Sam and Owen so her sandcastle will be protected. But a driftwood dragon threatens their fairytale world and our heroes must stop it from stomping their castle.

Fred can howl on command, a trick that only Sam can get him to perform. Sam can't wait to show Owen the special thing that Fred can do. The trouble is, Owen is constantly distracted by Petunia, his grandma's lively dog.

Sam's day gets off to a bad start when he spills toothpaste and breaks his toy airplane. When Stella tells him about an ancient Egyptian jewel that brings good luck, Sam is eager to cross a desert to search for it.