The Pocket Dragons (a group of very small dragons) live with a kindly old wizard, and their many adventures.

The Wizard brings home a friendly gnome named Gnorman to play with the Pocket Dragons while the Wizard searches for Gnorman’s missing family. But as soon as the Wizard is gone, Gnorman turns out to be “gnotoriously gnasty,” tormenting the Pocket Dragons for fun. To make matters worse, the rest of Gnorman’s family soon arrives, and they take over the castle! The Pocket Dragons must evict Gnorman and family from the castle, and give the Gnomes a taste of their own medicine.

When Specs meets the village’s beautiful new librarian, Princess Betty Bye Bell, he’s immediately smitten. To try to impress her, Specs and the other Pocket Dragons pretend to be a human-sized wizard, so Specs can bring the Princess flowers. The charade goes awry, however, when they run afoul of an ill-tempered sorcerer named Shmahz, who takes offense at the Pocket Dragons’ “wizard” and challenges them to a magical duel!

The Wizard receives a mysterious package from an old friend, containing a strange magical artifact: a star that can grant any wish! The Pocket Dragons immediately start making wishes, but quickly get more than they bargained for. The Pocket Dragons must work together to stop the star before their out of control wishes destroy the castle and level the entire village...