Princess Elizabeth plans on marrying Prince Ronald, who is practically perfect. However, a dragon arrives who destroys her kingdom, kidnaps Ronald, and burns all her clothes so that she has no choice but to wear a paper bag. Elizabeth follows the dragon and Ronald, and seeking to rescue her fiancé, challenges the dragon to burn forests with fire and to fly around the world. The dragon completes the tasks but after flying around the world a second time becomes tired and falls asleep. Elizabeth rescues Ronald, who is ungrateful and tells her to return when she looks more like a princess. Elizabeth realizes that she is better off without Ronald and sets off into the sunset to live her own life.