Danny's mother has disappeared into a fairy ring growing in her backyard vegetable garden, and Danny and his friends, Wendell and Christiana, must go to Faerie to try to save her.
Wendell the iguana's dreams are all nightmares and a Dream Wasp wants him as a host for her eggs--so, with Great-grandfather Dragonbreath's help, Danny the dragon and Suki the salamander enter Wendell's dreams to try and defeat the wasp.