The Count is sick of being a count, so he leaves Castle Duckula. He runs into someone who looks just like him named Sid Quack, a peasant farmer. The two decide to switch places.

Dr. Quackbrain, a deranged psychiatrist, convinces Duckula to take part in an experiment and traps Duckula in his Dream Machine. It becomes up to Nanny and Igor to enter the dream and save the Count.