After his parents' death, a young American boy John is adopted by his grandfather, Angus McGowan, who resides in a magnificent Scottish castle. There, he befriends a baby dragon in the highlands. 15 years later, Angus dies and the dragon is fully-grown. Unfortunately, the castle is beset with tax problems and John is coerced into leasing the dragon to a wealthy entrepreneur who runs a tacky theme park, Dragonworld. After realizing that the evil keepers have been abusing his dragon friend, John, wracked with guilt, puts his own life at risk to rescue the poor beast.