Princess Elizabeth plans to marry Prince Ronald, who she thinks is perfect. However, a dragon arrives who destroys her castle, kidnaps Ronald, and burns all her clothes, so she must look for something to wear. Her only option is a paper bag. Elizabeth follows the dragon and Ronald as she seeks 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 calls Ronald out for his ungratefulness. She rejects him as worthless: "You look like a real prince, but you are a bum". She then goes dancing off into the sunset to live on her own.