Book 2 begins minutes after book 1 ends.

Inside magic grandpa tree, Lucy's mother has just appeared to Lucy and Will to tell them that Lucy will not have to return to the hatedorphanage where dragon Sister Margaret is the head nun, and where there is bullying and unhappiness. Unfortunately, time in Lucy's mother's sphere is a little different from ordinary time on earth, and Lucy must go through more trials first. Her mean stepfather, released from jail, kidnaps her when she is in the woods helping a wounded baby deer and takes her back to his house, where his fierce dog keeps guard. But Lucy manages to charm the dog, who then helps her escape and find her way back to Sam and Rose, her future foster parents.

After Lucy disappears, Will goes to the woods to find her, where he runs into more scary adventures with an angry stepdad looking for Lucy. Lucy is puzzled that, contrary to her mother's message, she has to return to the orphanage. She is the only one who can possibly save Joe, the bully and the mischief maker in the orphanage, from becoming a hardened criminal like her stepdad. She soon realizes that all the unhappy orphanage children need her. She must find a way for the authorities to remove cruel Sister Margaret from her position.

Joe's plot against Sister Margaret and Lucy's attempts to help the orphanage children with their many consequences will keep listeners on the edges of their chairs. They must listen on to find out what happens at the end of book 2.