An Asian prince takes the Gummies to Asia to help defend his kingdom against a dragon that is ravaging crops and disrupting people, but Duke Igthorn stows away and seeks to see if anything in the Asian kingdom can be used to attack Dunwyn.
Igthorn gets his hands on a set of magical bagpipes, which entrance anyone listening to its tunes. Then, the Gummi Bears attend a masquerade festival at Dunwyn, but so does Igthorn, to get rid of King Gregor once and for all.
Cubbi sees the ghost of a Gummi Knight. He sets out to learn from him and help him fulfill an unfinished quest. And Grammi is visited by a childhood friend, a leprechaun named Nogum, who shows her how to have fun once again.
With repairs needed, the bears look for another home. After an adventurous night, the bears decide that their home really is perfect for them - almost. Then, Gusto has an existential crisis and ends up the unofficial royal artist.
Fed up with Gummi Bear stories by Sir Gawain, a retired knight and Cavin's grandfather, a jealous citizen of Dunwyn, Lord Willoughby, issues a challenge to him: Find evidence of the Bears' existence, or give up his entire fortune.
When Tummi's big girth causes him and Cubbi to be almost captured, Cubbi encourages Tummi to lose some weight. Then, Toadie takes up the mantle of the Crimson Avenger when the costume literally falls right into his lap.
An accidental mixture reduces Igthorn's ogre troops to infants. Grammi takes in one of them to raise it for the better. Then Dunwyn's most famous paladin, Sir Victor, pays a visit to the King's court, but the White Knight bears a secret.
When Gruffi breaks his foot, he stubbornly refuses to stay put. Then, King Gregor proposes a test for Unwin and the other squires to become princess Calla's bodyguard. Calla conceals her appearance in a suit of armor and competes as well.
Inspired by some old stories, Cubbi constructs a flight pack and races off into the clouds to find the legendary Aerials, but soon discovers that they are not like the old Gummi stories described.
Tummi finds a Gummarine, an ancient seagoing vessel that can take the Gummies to New Gumbria, where they can meet other Gummies, but their plans are quickly derailed when Duke Igthorn captures the ship and uses it to attack King Gregor.