One day at the Bagge Farmhouse, Muriel is preparing a seafood lunch while Courage is dressed as a pirate. Muriel serves Courage and Eustace the meal; while at the table, Courage sees a green thing roaming outside, which doesn’t realize is a dragon. Courage accidentally shoots one of his shells at Eustace's lobster, knocking it down to the floor. Then suddenly, the dragon breaks through the glass window, seeming like he's going to eat Eustace... but luckily, he leaned down to grab the lobster on the floor. After all this, still Muriel doesn't realize that there is a dragon in her house. So Courage tries to tell Muriel and Eustace the news, but Muriel misunderstands everything, which leads to the dragon quickly gobbling up Eustace, at which she finally realizes.
Eventually, Muriel and Courage make it to the windmill, where they learn the dragon cannot fly, and is the only one in his family who can't. Muriel puts pity on the dragon, but the dragon claims he has no choice and he will have to eat them so he won't starve. He then starts eating part of the windmill, but Courage stops him by offering to teach flying lessons if he doesn't eat him nor Muriel. Courage and the dragon try several techniques such as jumping off the roof and practicing over a giant fan, but both fail. The dragon eventually calls off the deal and again tries to eat Courage and Muriel.
After a long chase, Courage and Muriel escape the dragon by jumping into a nearby lake, as Muriel believes if he can't fly, then maybe he can't swim either. The two suddenly encounter another dragon, who wears glasses and only eats fish. This gives Courage an idea: why doesn't he feed some fish to the dragon to satisfy his appetite? Courage lures the dragon into the lake and carries out his plan, which is a success. It is then revealed that the dragon's name is William, and he is a long lost member of a family of water dragons (dragons that swim instead of flying and eat fish instead of people.) During his childhood, William got lost from his family and ended up being raised by flying dragons. Realizing the truth about himself, William opens a hatch in his stomach to release Eustace from his body. The Bagges celebrate by eating fish along with William and the nerdy dragon (who is William's brother.) The episode ends with Eustace being eaten yet again, this time by a flying dragon.
- A lot of fans seem to forget this episode exists.
- This is another episode where Muriel is aware of the danger and works with Courage to prevent it. However, she was unaware there was a dragon in the farmhouse at the beginning of the episode, until she saw it with her own two eyes.