With the three-hundredth anniversary of the castle approaching, Jane and Gunther are given an important chore to prepare for the Royal Jubilee. Whichever squire polishes more of the castle's myriad of shields will win the honor of carrying the banner in the Jubilee Parade. At the same time, Dragon wants Jane to come to his cave to help him decipher the carvings on his wall.

The scheming Merchant concocts a plan to get rid of Dragon once and for all.

An adventure in a newly discovered underground chamber allows Jane and Dragon to learn a little more about each of their fathers.