Since David and Zanna are in the Arctic, they are unaware of what is happening back at home with Gretel, Zanna's new dragon. After a few hours of Grockle's existence, he was turned to stone. Gretel attempts to revive her lost friend. Liz had locked her up in a wooden cage in the Dragon's Den (her at-home workshop).
David writes a novel of the Arctic which he calls White Fire. He thinks what he's writing is fiction, but it's really happening to two bears called Ingavar and Thoran. As Thoran peacefully follows a sign, Ingavar must follow straight orders to steal something very precious from David.
Tension is rising at the Pennykettles' as Lucy is suddenly kidnapped by a long forgotten rival. This 'rival' wishes to raise the ancient dragon Gawain from his stone-laden resting place. Over the time Lucy is there, she goes through extreme changes. Gwilanna knew this would happen as Lucy began to look like Guinevere, her ancestor.
After a sudden bear attack and the news about Lucy, David returns home to help Liz overcome this rough time. In the middle of a serious conversation with Liz, David receives a heart-breaking phone call. He has just learned Zanna, his girlfriend, has just been kidnapped by bears. Under all this pressure, David breaks down. Liz soothes him in dragonsong, the ancient soothing method Guinevere used on the ancient dragon Gawain.
While David is home, Grockle suddenly awakens to find the window opened. Curious as he was, he flew out of the window. Nobody could believe it. Happiness, shock and horror welled up in everyone at the sight of Grockle's sudden move.
Lucy is not having a good time at all. She must eat the disgusting stuff Gwilanna enjoys eating everyday. She decides to explore the cave of Gawain when Gwilanna leaves one day. She pushed around and discovers a secret hideaway she thinks her ancestor, Gwendolen, used. Eventually, she falls asleep by the bones of Gwendolen and a bear that guarded her. A female bear that thinks it is her 'last season on earth' ventures into the cave, down into the hideaway, and decides to follow the dead bears example. She guarded Lucy as she slept. Gwilanna returns and finds the hole. She notices Lucy and the female bear. She decides tiredly to leave them be.
David gets Liz to tell her who Arthur is after Gadzooks gave him the name out of nowhere. After hearing the cruel things Gwilanna did to break-up Arthur and Liz, he travels to Farlowe Island to find Arthur.
Arthur goes by life on a religious island. He chooses the name Brother Vincent. He goes through a lot on the island. In fact, he survives a vicious Fain attack .
David arrives at the island and calms down the scared yet vicious Grockle. Grockle flies to the Arctic when David tells him to. After a while of introductions and explanations, Arthur teaches David how to use Dr. Bergstrom's mysterious talisman to teleport from place to place.
David teleports to the Arctic and battles the very same Fain to the death. The Fain stabs two spears of ice through David's chest, but David won't die because the ice is really Gawain's fire tear. After revealing the secret of the ice to the Fain, the spirit of Ingavar punches the Fain out of the body of Tootega, the Inuit whose body the Fain had possessed, killing Tootega, and the Fain. Zanna, in tears, comes running over to David. They get locked in a heart-breaking conversation. After assuring her they'd meet once more and giving her a Valentine's Day gift, (a new dragon, G'lant, which you can only see if you really believe in dragons) he parts from Zanna. Some polar bears take David's body on a piece of ice, Ingavars spirit lays down by his head and the polar bears pound the ice and send David and Ingavar into the water.
Back at home, after releasing Snigger into the wild after his kidnapping by Gwilanna, Zanna tells Liz, Lucy and Arthur that she is pregnant with David's baby.