The Wizard brings home a friendly gnome named Gnorman to play with the Pocket Dragons while the Wizard searches for Gnorman's missing family. But as soon as the Wizard is gone, Gnorman turns out to be "gnotoriously gnasty," tormenting the Pocket Dragons for fun. To make matters worse, the rest of Gnorman's family soon arrives, and they take over the castle! The Pocket Dragons must evict Gnorman and family from the castle, and give the Gnomes a taste of their own medicine.