A princess who doesn't want to get married is in tears. She finds a toy dragon that comes to life. They run away from the castle and meet a young wizard in the forest—Baba Yaga's grandson. The wizard transforms the toy into a real dragon; although it grows huge, it still acts like a petulant child, and they have nowhere to live. The wizard performs another miracle, and a magnificent castle appears on the shore. Now everyone is happy—they can raise the Golden Dragon in peace and continue practicing magic.