As the episode begins, we see a hoard of pirates terrorizing small children at the Incredible Pizza Company. Faust is seated with Hook at a table filled with the remains on pizza crusts and dirty plates. Hook demands that Faust stop the idle chit chat and tell him where Pan is. Faust informs Hook that Pan has retreated back to Neverland. He also reveals that there is a working portal to Neverland hidden in the depths of Fantastic Caverns. Hook quickly corals his men and they board a Branson Duck Bus to depart for Fantastic Caverns.
In the meantime, the camera pans around to reveal that Percy, Wayland, Jack, and Ali have been hiding out in the booth behind Hook and Faust. Percy overheard everything Faust said to Hook. Percy informs them that he used to be a tour guide at Fantastic Caverns and knows the area well. They set out to try and reach Neverland before Hook does.
After leaving Incredible Pizza, Faust receives a phone call from Morgan. She tells Faust that she discovered that the woman who is pushing Ambrosia on the streets is a fable named Dana Davenport. Faust goes to Dana’s apartment to confront her, but finds it empty and ransacked. Before he can leave, he is confronted by Robyn Goodfellow and the Hessian. Robyn berates Faust for failing to put a stop to the Ambrosia problem. Faust refuses to be intimidated by the Hessian and explains to the King’s emissaries that the problem will be resolved shortly. Robyn reminds him there are only two days left until the purge begins.
When Percy and his friends arrive at Fantastic Caverns, they discover that Hook and his men have already arrived. They enter the cavern, but are confronted by an employee who tries to stop them when they try to leave the approved tour route. Percy cold cocks the tour guide and leads his friends deep into the underbelly of the caverns. While in pursuit of Hook, they encounter a gaping cavern over a near bottomless pit. Jack uses a bean to grow a bridge over the pit and the group moves on. Next, they encounter a vast underground lake filled with albino crocodiles. The group kills one of the crocodiles and uses its skin to disguise themselves so they can cross the lake unmolested.
Faust deduces that Dana has a secret bolt hole and he goes to confront her there. Faust offers her exile and asylum in Neverland if she informs him about the plot she is involved in. She is initially unwilling to answer his questions, but she changes her mind after Faust reveals that the Hessian is following him and will be arriving shortly to execute her. Dana explains that Jack Fletcher hired the Forty to create and market Ambrosia as a means of destabilizing the Red Lady’s rule and provoking a conflict with the Shattered King. Faust encourages Dana to “think childish thoughts” so she can follow him to Neverland before the Hessian arrives.
While searching for the entrance to Neverland, Percy and his friends cross paths with Hook. Wayland, Jack, and Percy manage to hide. Ali, however, is discovered and captured by Hook’s men. Hook tortures Ali to discover why he is in Fantastic Caverns. Ali reveals that his friends are also looking for Peter Pan. He lies, however, and tells Hook that his friends are already in Neverland. In a fit of rage, Hook monologues and reveals the secret to entering Neverland – “How did they know they had to follow the second star to the left and go straight on until dawn?” Hook leaves Ali for dead and leaves for Neverland. Percy, having overheard the whole conversation, rescues Ali and uses the information to follow Hook into Neverland.
When Percy, Wayland, Ali, and Jack arrive in Neverland, they find themselves in a tropical forest surrounded by cannibals. They try to talk themselves out of their predicament, but fail and end up tied up in a cooking pot. Percy escapes and confronts the Cannibal tribe’s champion – a carnivorous Ape named Uk-Tah. While Percy engages in an epic battle with Uk-Tah, Jack and Wayland manage to escape. Ali, however, is caught trying to sneak away and returned to the cooking pot.
Faust uses a short cut to arrive at Wendy’s House in Neverland. There he finds a filthy, neglected home and a very bored Peter Pan. Pan is thrilled when Faust tells him that Hook has returned to Neverland and is trying to hunt him down. He immediately gathers his sword and goes to confront his old nemesis. In the meantime, Tinker Bell leads Faust to the top of Neverpeak Mountain. There he discovers that he can literally see beyond belief. He uses that ability to watch as events in Neverland unfold.
Percy’s battle with Uk-Tah ends with him drowning the giant ape in the lagoon. Before he can catch his breath, however, he is set upon by the giant crocodile Tic-Tok. Percy mounts the beast and uses the scent from one of Hook’s hat’s to direct Tik-Tok towards the Jolly Roger.
While the cannibals are watching Percy fight Tik-Tok, Ali makes a second escape attempt. He manages to get out of the cooking pot, but he remains tied to the spit. Once the cannibals realize their meal is gone, they give chase and a series of hilarious stunts ensues. Ali finally manages to escape the cannibals with the aid of Wayland who has made friends with a giant bird. Wayland directs his new friend to pick up Ali and the two fly to Neverpeak Mountain to meet up with Jack Fletcher and Faust.
In the meantime, Hook and Pan are engaged in an epic battle aboard the Jolly Roger. The battle is close, but Hook eventually begins to gain an edge on his old enemy. Just when it looks like Hook might win, however, Percy sets Tik-Tok lose on the ship. Hook, distracted by the arrival of the giant crocodile, loses his hold and gives Pan the opportunity to take the fight to higher ground. The two eventually end up dueling up the mountain road to the top of Neverpeak Mountain. As the two arrive at the peak, so does Wendy. Apparently, Tinker Bell informed her that Peter was in danger and summoned her to the mountainside.
While everyone is distracted by Pan and Hook’s duel, Percy uses the opportunity to kidnap Wendy. Faust betrays Jack Fletcher, cutting his hamstrings. Faust summons Robyn Goodfellow to Neverland and informs him that Jack is responsible for the Ambrosia problem. Robyn thanks Faust for his aid, but reminds him he still has to find the Red Lady within 24 hours to prevent the purge. Robyn departs with a screaming Jack Fletcher. Faust, Percy, Wayland, and Ali leave with Wendy.
After returning to Ozarkia, everyone goes to see Granny Orichenko. Percy gives Granny Wendy in return for information about what happened to Big Z. Granny reads an omen and tells Percy that Big Z discovered that Jack Fletcher had hired the Forty to develop Ambrosia. She tells him that the Forty were hired by Jack Fletcher to eliminate Big Z, but someone recently made them a better offer. The Titan Helios paid them to kidnap Big Z and deliver him to a warehouse in Nixa.
Looking over Granny’s shoulder, Faust is able to see some of what Granny is not revealing to Percy. He reveals that the Forty agreed to help Jack Fletcher because they have their own plan to overthrow the Shattered King and put someone else on the throne. Granny is impressed and she rewards Faust’s insight by informing him that the man the Forty want to be High King is Solomon. as the Legends depart to plan their next move, Granny prepares Wendy for dinner.
Faust and Percy have a private conversation. Faust reveals that he once betrayed Solomon and he feels the need to pay him back. Faust asks Percy if he will help the Forty place Solomon on the throne. Percy agrees provided King Arthur is OK with the plan. They both agree that Ali will not willingly aid the Forty. They agree to send him on a quest to distract him while they pursue their plan.
Faust informs Ali where he can find several of the ingredients he needs to cure the curse of living death he still suffers from. Ali goes home to Morgan. He informs her that he needs to return to Oz to find the items he needs to end his curse. She reluctantly agrees to go with him. When they return to Oz, they find that it is worse than the last time they were present. Apparently, Galinda absorbed some of Malificent’s essence and became corrupted. After taking control of the Emerald City, she animated an army of tin woodsman which she has been using to enforce her will. Ali and Morgan fight their way through Galinda’s army, but Ali’s right arm is severed in the process. Ali and Morgan sneak into Emerald City to steal the last remaining ingredient for Ali’s cure. Before they can escape, however, they are confronted by Galinda. Morgan sacrifices herself to save Ali from certain death. Her selfless act brings Galinda back to her senses and she is able to force the remaining piece of Malificent from her soul. Galinda gifts Ali with the item he needs for his cure and returns him to Ozarkia.
Percy and Faust go to Nixa to confront Helios. While enroute, Percy arranges to trade a poem to Apollo in return for temporary use of the sun god’s bow. When they arrive in Nixa, Faust manages to convince Helios to offer them hospitality. They discover that Helios has his father, Cronos, on life support. Helios has been feeding Big Z’s essence to Cronos to help him recover. Faust offers Helios and alternative solution. He agrees to give Helios a major dross item (the rock Zues feed to Cronos) and the knowledge of how to use it to heal Cronos in return for Big Z. Helios agrees. Percy uses Apollo’s Bow to heal Big Z.
When Ali returns from Oz, he is depressed and hopeless. He gets drunk, gathers all of Morgan’s firearms, and goes to confront the Forty in their secret hideout. He arrives at roughly the same time Faust, Percy, and Big Z do. Faust tries to seduce Ali to keep him from executing the Forty. One of the Forty spots Ali, however, and opens fire. An epic slow motion gun battle begins.
Gretchen, having been told that Faust is in danger, arrives in the middle of the gun fight. Faust throws himself in front of Gretchen to save her and is killed. During the battle, Ali manages to kill many of his enemies using a well placed grenade. He is, however, badly wounded by a hail of gunfire and the relentless damage to his body makes the zombie curse progress more quickly.
Percy and Big Z manage to stop Ali and the Forty from killing each other. They are able to broker a delicate truce by revealing that they have a common goal. Percy informs the Forty that he wants to help them place King Solomon on the high throne. He gets them the aid of King Arthur by offering to return Excalibur. He then offers to assassinate the Shattered King for them. The forty agree to the plan.
Meanwhile, Faust awakens in the land of Nod where he find Nick waiting for him. Nick reveals that Faust’s betrayal and death were all part of a long standing plan. Nick also hints that he convinced Gretchen to sign away her soul to him in return for helping Faust. The two begin a slow journey back to the land of the living…
Percy sends Wayland and Ali to his home. Mari tells them how to revive the petrified Red Lady. Before they do, however, Wayland removes the piece of the Shattered King from her. Now free of the King’s control, the Red Lady agrees to keep Robyn Goodfellow and the Hessian busy while Percy assassinates the King.
Percy calls in a favor from Wayland and forces him to forge a magical blade for him – Kingslayer. Wayland does so reluctantly. Percy uses the blade to assassinate the mad king. With Humpty Dumpty dead, King Solomon is easily able to claim the high throne and a new era of peace begins.
In the epilogue, we discover that the rise of the Shattered King was engineered by Solomon, Nick, and Moriarty (the hidden leader of the Forty). Solomon knew that most of the legends would not appreciate what he could offer until they had experienced a terrible leader. As such, Nick arranged for key Legends to betray the individuals who might make good kings so that the Shattered King could take the throne. Since that time, Nick, Moriarty, and Solomon have been slowly conspiring to bring about the Shattered King’s downfall so Solomon could take the throne. The plan was a tremendous success, but all involved agree that certain people (Nick, Moriarty, Faust, and Percy) need to be exiled for the reign of peace to begin…
As Nick is packing up his belongings, Preston Charm approaches him and asks to make a deal. Preston explains that he wants to save Gretchen’s soul and asks what Nick wants in return…
Meanwhile, Ali brews a potion to cure his zombie curse using ingredients stolen from Granny Orichenko, Oz, and Neverland. After curing himself, he becomes increasingly bitter about the loss of Morgan. With Moriarity gone, Ali makes a bid to take control of the Forty. He slowly begins plotting how to overthrow King Solomon and insure that every legend knows how bitter and miserable his existence is…