The evil Sir George and his magician companion Mervin are plotting to conquer the kingdom of Camelhot and exterminate the native dragons. After Sir George's failed siege against Camelhot, he declares his ally, the Black Dragon to win an upcoming dragon tournament the winner of whom shall be married to Flame and become the new king. A young inventor named Flicker wishes to marry King All-Fire's daughter Flame, but he is rejected due to lack of knighthood. While rescuing King All-Fire's knights from their investigation of Black Dragon, he finds this Black Dragon is a mechanical dragon, then sabotages it. Sir Loungealot takes Flicker as a squire, but takes credit for Flicker's victory on the Black Dragon, prompting Flame to leave the castle, only to be kidnapped by Sir George and Mervin. The King's Chancellor is secretly working for Sir George and steals Flicker's invention so Sir George can build a more powerful Black Dragon II. To prevent the King from noticing Flame's absence, Flicker has the court jester Trivet impersonate her.