In ancient times on Earth, there lived a race called Dragonors. Following a tradition to gain status and recognition in the village, those able would compete in rigorous games of cunning and abilities. Tournaments culminated in a weapon battle to the death or submission while riding a dragon; at its end, the winner was given status within the village.

In this event, a blacksmith named Luken intends to win and gain the regard necessary to ask for Talulah's hand in marriage from her father Ephenio, lord of the village, and competes in the challenge. Luken, who has no dragon or experience dragon-riding or battling, has no choice but to win against all the other competitors for his love. The final contest pits him against the worthiest aggressor. He is fortunate to use the more aggressive dragon of his true love, Talulah, that carries the battle and allows him a most unlikely victory.

Over time, the happiness of Luken and the Dragonor princess turn to despair as men invade their once pristine swamplands. The earthlings eventually cause the death of Talulah, and the great Lords of the Dragonors decide to leave the Earth instead of destroying men.

Dragonors run into unlikely allies in their new lands, the Mejuarian, and the two different groups in all ways and mannerism develop friendships and a familial bond. This closeness compels the valiant dragon riders to assist the king of the Mejuarian in the recovery of his missing mewlings.

As luck would have it, King Teloby also discovers a new diminutive race interested in a friendly alliance with both the Mejuarian and Dragonors. A meeting with Marina, Queen of the Arvunglies, reveals that she has found one of the three missing nests and treasures it as a colorful bauble. The little queen agrees to return the nest happily. Still, she tells them that rescue of the other two could prove a challenge. To retrieve the babies, they have to venture and most likely defeat a rogue dragon that attacks their small village from time to time.

On Earth in 1960, Ren discovers two nests while exploring by a lake. His father, a veterinarian, draws an interest in them and takes them back to his facility for further investigation. Ren fears they are UFOs with body-snatching capabilities. Ren's fears soon disappear when his father indirectly hatches the two creatures in his incubator and discovers they are lovely, intelligent creatures that remind him of some rare species of puppies.

Unaware that the missing nests fell to Earth off the airship on their way to the Dragonor land, King Teloby prepares himself. For the next day, the three groups would head out for the dubious task of entering and searching the dragon's lair for his missing mewling.