Ray is reading a fairy tale book to Slimer one night, but is too sleepy to finish it. Slimer doesn't want to wait until the next night to finish it, so he flies off into the containment room to read it himself. However, a portal opens and a dragon exits. She asks Slimer for help in finding a wizard who's pursuing her, and then two ogre knights exit and start chasing after the dragon.
Slimer and the dragon take off, and Slimer tries to warn Janine about the ogres, who then show themselves. Janine hits the alarm and the Ghostbusters disarm the ogres, but the ogres still manage to kidnap Janine. The dragon reveals that she's the last of her kind and comes from a place called the Realm of Fantasy, and a wizard named Orlox is trying to use her heart in a potion of invincibility. The Ghostbusters, Slimer, and the dragon head to a subway, where she opens a portal that they enter.
In the Realm of Fantasy, they find a poster that says that Orlox will let whoever brings him the last dragon will get to marry Janine. The Ghostbusters steal the armour of some knights who are bathing in a lake, then approach Orlox's castle with the dragon. However, after a bit of a skirmish, they end up trapping him.
The Ghostbusters, Janine, and Slimer exit the Realm of Fantasy, then they head back to bed. Ray offers to finish the story, but Slimer declines, saying he knows the ending now.
This episode provides examples of
- Book Ends: The episode begins and ends with the Ghostbusters going to bed.
- Damsel in Distress: Janine gets kidnapped and locked in a cell.
- Did You Just Flip Off Cthulhu?: Peter yells at the ogres and Orlox while fighting them.
- Evil Laugh: The ogres laugh maniacally when they disappear with Janine.
- Eye of Newt: According to Orlox, a dragon's heart is an ingredient in an invincibility potion.
- Gone Swimming, Clothes Stolen: The Ghostbusters steal the armour of some skinny-dipping knights to go undercover.
- Go-to-Sleep Ending: The episode ends with the Ghostbusters going to bed.
- Instantly Proven Wrong: Downplayed — Winston says that everything is normal again, only for a crowd of people to disembark the subway train, a few of whom are dressed oddly (with Peter even lampshading it with "You were saying?"). However, oddly-dressed people are still relatively normal compared to the episode's events, which Janine points out.
- Insult Backfire: Peter insults the ogres as "slime balls", then says, "No offense" to Slimer.
- It's All My Fault: The dragon blames herself for Janine being kidnapped, since the ogres were after her (the dragon).
- Last of His Kind: The dragon is said to be the last one in the Realm of Fantasy.
- Mooks: Orlox's underlings are aggressive ogres in knight's armour, which are easily disarmed and
- Mythology Gag: Winston references Ray's calling Slimer a spud in the movie by calling him one.
- No Name Given: The dragon is unnamed.
- Platonic Kissing: Janine kisses Slimer after she is rescued.
- Screaming Woman: Subverted — Slimer thinks he hears a woman screaming and is nervous, but it turns out to be in a movie Winston is watching.
- The Pratfall: During the fight, the ogres are knocked onto their behinds.
- Quaking with Fear: Slimer and the dragon shake nervously when the ogres show up.
- Say My Name: Slimer yells Janine's name when the ogres grab her.
- Taken for Granite: The ogres turn to stone once Orlox is trapped.
- Trauma Button Ending: Subverted — Slimer doesn't want Ray to read him the book that started the chaos... but he's not traumatised; he's just decided he knows how the story ends now.
- Winged Unicorn: One resident of the Realm of Fantasy is a unicorn with wings.
- Woken Up at an Ungodly Hour: Peter grumpily claims, after being woken by the alarm at night, that it had better be an emergency or he'll make one.
- Wolf Whistle: Slimer whistles in awe when he reads a thrilling part of his book.
