Eight-year-old Jack and his 7-year-old sister Annie recap their first adventure with the dinosaurs. Upon finding a blue leather bookmark in the pages of a castle book, they wing their way via traveling treehouse to the Middle Ages.
Here, they witness a feast in the Great Hall. When they are questioned, "Who art thou?" the two run for cover, finding themselves caught in a room full of armor. Three unsavory guards corner them in the dungeon, until Annie pretends her flashlight is a magic wand and stuns them.
A trapdoor provides easy escape into the moat filled with crocodiles, when along comes a knight on horseback, delivering them to safety. At home, Jack notices an M on the bookmark, and concludes that the same person who dropped the coin in the first adventure also owns the books and is responsible for the magic in the tree house.