Envious at Danger Mouse's ever-growing medal collection, Penfold questions whether he will ever be deemed special enough to receive a prize of his own. Seconds later, a knock at the door reveals a holographic Quark, who anoints Penfold as 'the chosen one' in a suspiciously automated message that culminates in an overawed Penfold receiving his very own magic wand. Penfold's joy is short-lived however - as he and DM step outside of HQ to find that the streets of are London teeming with hundreds of wannabe wizards, all brandishing identical wands. After discovering that the wands are mass-produced shavings from Merlin's legendary staff, the pair set out to stop Quark's latest money-making scheme by reuniting the staff with its rightful owner.

Having put the Danger Babies through their paces, Professor Squawkencluck leaves it to Danger Mouse to settle them down with a nice soothing story. Unfortunately storytelling to children isn't one of Danger Mouse's strong points, and he ends up scaring his captive audience with a tale that reimagines him as an evil villain. Squawk returns to find Danger Mouse bound and gagged and that the Danger Babies have made off with the Danger Car and are on their way to Arkwirght Asylum to free the 'heroes' from Danger Mouse's topsy-turvy story.