The remaining people of Camelot have traveled the countryside for several months, seeking the Grail while fleeing their enemy. Jack is frustrated that his concentration does not give him insight, so the Lady of the Lake sends him a vision of the Grail's whereabouts. The group goes there, to discover that the water is cursed and several knights are murdered by a beast attempting to swim to the Grail's cave. Meanwhile, the Lady has told Rauskaug of their location and the barbarians begin their pursuit.

After sleeping for fifty years, the enchanter Merlin awakes weak and returns to the decadent Camelot, where he finds that the Holy Grail has vanished. With the kingdom under siege by the savage Rauskaug, helped by the evil sorceress Lady of the Lake, Merlin seeks help with a thief and aspirant sorcerer, Jack, to find the protection of the Holy Grail. However, he realizes that corruption has doomed Camelot.