Whilst escaping from a grizzly bear, Ivandoe and Bert fall into an underground cave where a large Troll-woman in a party dress keeps them captive in order to play with them like dolls.

Ivandoe and Bert come across a Talking Tree who promises to tell their fortune in exchange for gold. An enthusiastic Ivandoe hands over his golden locket, just before Bert discovers the sassy gnomes hidden away inside the hollow tree.