As a thank-you from Merlin and Morgan, Jack and Annie are sent on what should be a vacation at a luxurious resort in Cozumel, Mexico, but is, by mistake, an adventure with ancient Mayans, instead.
Jack and Annie travel to a monastery in the Swiss Alps where, with the help of St. Bernard dogs and magic, they seek the second of four special objects necessary to break the spell on the wizard Merlin's beloved penguin, Penny.
When a mysterious note invites them to Camelot, Jack and Annie travel in the magic tree house to the magical kingdom where they must find a lost dragon.