A magical mirror is stolen by Demona, who frees the mischievous Puck from it; purposely re-interpreting Demona's wishes, he makes the Gargoyles human and the humans gargoyles.

On Halloween, the Gargoyles go out into public while Xanatos proposes to Fox, giving her the Eye of Odin as a wedding gift. The gift's magical properties come to light during the full moon, and she becomes a werewolf that threatens both Xanatos and the general population. Goliath is forced to help Xanatos and realize that even he is capable of true love.