After her first adventure with Azara, the Persian Princess, Rosie is on the lookout for more Little Princesses around her Great-aunt Rosamund's Scottish castle. One morning, while she is playing hide-and-seek with her little brother, Luke, Rosie stares up at the old tapestry hanging above the fireplace in the Great Hall. And she sees a girl with long blonde hair, wearing a beautiful medieaval gown standing next to a golden dragon. It must be a Little Princess! As soon as Rosie says hello she is swept away to the kingdom of Tannelaun, where she meets Princess Isabella. Isabella is very upset because her pet dragon, Cedric keep getting hiccups and accidentally burning things with his fiery breath. The villagers have had enough and Isabella's father, the king, says Cedric must be sent away. Will Rosie be able to help Isabella to save Cedric . . .?