A story Mickey plans to read aloud about an enchanted egg, suddenly becomes real. The big purple dragon egg Wizard Pete is taking care of, rolls out of the castle and into Donald and Goofy while they are walking to the Clubhouse. A purple baby dragon pops out of the egg. Mickey and friends name it Zoe and take it to Wizard Pete, while trying to get out of his traps.

A mechanical cuckoo bird that's a birthday gift for Daisy flies away, and the gang embarks on an imaginative "Alice in Wonderland"-like adventure to retrieve it.