Narrator explains the story for this episode. Lord Narg wants to conquer the mainland but he cannot do it without a special weapon-magic wood from the location of haven wood. He sends his trolls to find Hayvenwood dwellers to hand over what they have.
One of them puts up a fight but cannot defeat all of them. He calls or help and we see Dirk, Daphne, Tim, and Rosemary hear his call. Dirk defeats one of the trolls but his sword is broken. The Havvenwood dweller hands him his magic staff and Dirk defeats the trolls.
Lord Narg is show still planning to conquer the mainland. We then see he has a couple of Hayvenwood dwellers as prisoners. Narg says he will use them do for his plans.
Meanwhile, Dirk gets a new sword courtesy of Lord Graybeard who leaves the Hayvenwood dwellers. He tells Dirk that there is a legend where a person can stand at a certain location and turn Hayvenwood into steel. He tells Dirk this location and says that his sword will be hit by lightning and turn to steel. Dirk also decides to go the Isle of Narg because that's where the peak is for his sword to turn to steel. On the isle he is confronted by trolls. The narrator presents the choices Dirk has 1) To retreat or 2) To confront the trolls. Dirk confronts the trolls and is captured. Tim and Daphne see this happening and try to rescue Dirk as Narg prepares to go to Hayvenwood. However, they don't need to. Dirk tells his Hayvenwood companion to give his magic staff and jump with him of the peak of Narg. They do and survive as the staff serves as a
lifesaver for them. Dirk takes his sword up to the peak of Narg and
sees his wooden sword turned to steel.
Reuniting with Daphne and Tim, Dirk works out a plan where they'll steal the clothes of Narg's trolls and then stowaway on his ship. The plan succeeds as they try luring one troll and another and then clubbing them with the magic hayvenwood staff. Dirk, Tim and others overcome the trolls on the ship and release the other Hayvenwood prisoners.
Dirk and the others make it to Hayvenwood but Narg has his war machine built and starts destroying the land. Dirk comes with an up idea. He sends in the Hayvenwood dwellers to deal with Narg's trolls while Dirk uses his new sword to cut through the war machine.
He succeeds and we see the rest of Narg's troll running away. The narrator recaps what happened and episode ends.