In the Heeler house, Bluey is drawing herself as a fairy with markers in the dining room. Bandit joins in, creating a barbarian version of himself and a horse named Doug, which Bluey thinks looks more like a donkey. Chilli and her horse enter the scene with a detailed drawing, and a crayon rendition of Bingo arrives with a motorbike. The family’s mission is to find the dragon that roams the “land”.
As they make their way through the land, Bandit starts to feel uncomfortable due to his itchy furry jocks. Suddenly, Humpty Dumpty appears, and despite Bandit’s claims that Humpty is friendly, she eats him and Doug in one swift motion. The Heelers attack, and with Bluey’s help, Bingo rams Humpty, causing her great fall. Bandit and Doug are freed from the yolky prison and celebrate by making scrambled eggs. The family continues their journey, reaching a blank forest that Chilli helps fill in with scenery. A wise, old talking tree, initially drawn by Bandit and finished by Bingo, appears with a cherry on top, but it’s hungry for the Heelers. The tree grabs them, and Bandit tries to draw an axe to rescue his family, but the tree tosses them away before he can attack. They land in a rocky clearing, where they decide to rest for the night.
As the night falls, Bluey is feeling down, and Chilli asks her to cast a memory spell on Bandit. The spell reveals Bandit’s childhood passion for drawing cars, but also shows how his confidence was shaken by Bucky Dunstan’s criticism. Meanwhile, Chilli’s own childhood memories show her drawing horses, and her mum’s encouraging words help her keep practicing. The next day, the Heelers face various weather conditions and finally find the dragon’s cave, where they discover treasure. However, the dragon appears, and after a battle, Bluey turns it into a handbag. The cave starts to collapse, but Bandit uses his drawing skills to create a car with a bullbar, which they use to escape. As they emerge from the cave, Chilli’s horse says a tearful goodbye and transforms into a majestic pegasus, flying away as the Heeler family watches.
