Digby needs to find Spellbook's missing page so that Fizzy can stop Grumpy's stinky cheese running amuck around Applecross. Digby decides to use magic to make Mungo more intelligent, but he ends up a genius and starts causing trouble.
Digby and Archie get caught up in a magic spell gone awry and end up tiny! Digby accidentally loses Chips' cuddlenut but doesn't want to admit it. Digby instead convinces Fizzy to cast a spell to help Chips sleep without his favorite toy.
Chips makes a statue of Digby for a gift, but Digby finds the statue ugly and tries to get rid of it. Digby insists on dragging Fizzy along to see the annual 'Sprite Flight' despite her having a bad case of fairy flu.
Digby gets a wobbly horn but doesn't want his friends to know, in case they think having one horn makes him less of a dragon. Digby and Chips ignore Grumpy's warning and get trapped by the rising tide in what they think is a magical wishing cave.
Digby adopts an egg with legs, believing it is a dragon egg. He soon learns that the responsibility of his new pet is more than he expected. Chips puts on a mystical amulet and grows wings. Digby can't wait to have his turn with the amulet!
Digby is jealous of his cousin's new moustache and convinces Fizzy to magic him one too, but the spell goes wrong! When Digby thinks he's seen a knight in shining armour in Applecross, he panics - knights and naughty dragons don't get along!
Ainsley Howard
Fizzy Izzy
Clark Devlin
Digby
Lucy Montgomery
Grizel/Spellbook
Rasmus Hardiker
Chips
Clive Russell
Albert