When David moves in with Liz Pennykettle and her daughter Lucy, he discovers a collection of hand-crafted, clay dragons that come to life and have magical powers. David's personalized dragon, Gadzooks, can forecast the future, and inspires him to write a story which reveals the truth behind an unsolved mystery close to home. The story has an unhappy ending, and when David realizes the consequences of it, he is angry. Then David finds Gadzooks crying and near death, and he discovers that these special dragons die when they are not loved. Soon David is forced to save his friend and unlock the powers of the fire within.