When David moves in with Liz and Lucy, he discovers a collection of hand crafted, clay dragons that comes to life and has magical powers. David's personalized dragon, Gadzooks, can forecast the future, and inspires him to write a story which reveals the truth behind an unsolved mystery close to home. The story has an unhappy ending, and when David realizes the consequences of it he is angry. Then David finds Gadzooks crying and near death, and he discovers that these special dragons die when they are not loved. Soon David is forced to save his friend and unlock the powers of the fire within.