Damian, an average middle grader, discovers his elvish heritage when he meets Lady Rachel, his aunt, who happens to turn his bike into a stallion to summon him to her castle. At Lady Rachel's palace Midwood, Damian discovers a world of magic, from the wood's heart to the fay tree. He stumbles across marvellous things he never thought he would. But, everything is not as it should be. While Damian is on his way home, he notices that the wood is on fire, and Lady Rachel comes and puts it out with the dryads' help. While back at home, Damian's neighbour is holding a mermaid prisoner in his pond. Damian plans on helping the mermaid escape. But he has no idea how to do it. His grandmother, who happens to be an enchantress herself, comes visiting from whom Damian begins to learn simple magic tricks. Meanwhile, Damian rescues the mermaid with the help of Lady Rachel and his grandmother.