The film bears little relation to the first movie. Johnny McGowan and his only true friend, Yowler, the last dragon on Earth, are in serious trouble. The Dark Knight, the enemy of Dragonkin, has returned and is determined to slay Yowler, in order to obtain the magical powers inside the dragon's blood to bring a new evil age of darkness upon the planet. Young John begins a new quest to protect Yowler, defeat the Dark Knight and save the world for all future generations.