After the first crusade to free the Holy Land, the English knight George decides to settle down. Back in England he meets the kindly king Edgaar, whose beautiful daughter Lunna has disappeared. He agrees to search for the princess together with her fiancé Garth and the faithful servant Elmendorf in return for a small plot of land. Finally George discovers the princess next to a dragon egg but confusedly realizes that Lunna is willing to protect this unhatched dragon by any means. This requirement makes the journey home not easier.