Four woodland friends-Samba Rat; Peter Porcupine; Squirrely, a scout camp mascot; and Cindy, a ladybug-returning home from a spring picnic are caught in a storm and discover a large mysterious egg hidden in an ancient tree. When it hatches into a baby dragon, the four friends are set upon an adventure to find the little creature a home. The four friends are joined by Kitty Joy, a young master scout who first tracks them and then joins them on their adventure to find a mysterious sanctuary and save Sherman, the Last Dragon.