Carly, an 8 year old girl, dreams about visiting far away places every night. A magical dragon listens to her dreams and knows he must meet her. On the first night, Carly is scared when the medium size, multicolored dragon appears in her bedroom and starts talking to her. Her natural curiosity easily overcomes her fear and she asks him many questions on the second night. She must give him a special name after which the dragon promises to take her on adventures to visit real places.