Nell is hospitalised when she claims to have been attacked by a dragon. Mr. Gribble takes advantage of her absence to try to reclaim her cottage, so he can sell the land to wealthy clients. Determined to help Nell to save her cottage, the Twist family set out to find the dragon and the rubies Nell was looking for.
Thinking that Nell might be crazy after claiming she has seen a dragon, both Harold and Matron Gribble plan to keep her in hospital until her house and land - which involves the Lighthouse that the Twists had recently purchased - along with the unpaid mortgage falls directly into their hands.
While Bronson heads to the cave to prove that there is really a dragon, Linda and Pete go to Seagull Shack and find Nell's lost rubies. At the cave Bronson goes inside to find the dragon breathing fire. Pete and Linda find Nell's two rubies from a ghost seagull after getting its body back.
At the hospital Pete and Linda hand the rubies over to Nell so she can pay off her mortgage, and can a baby dragon really bite you if there's no such thing as dragons?
- Richard Moir as Tony Twist
- Sam Vandenberg as Pete Twist
- Tamsin West as Linda Twist
- Rodney McLennan as Bronson Twist
- Bunney Brooke as Helen Rickards
- Frankie J. Holden as Harold Gribble
- Judith McGrath as Cecilia Gribble
- Based on the short stories "Birdscrap" and "There's No Such Thing" from Unbelievable!.