Zachariah leaves his fiancÃ©e, Cynea to slay the dragon, Braxis, who has been rampaging through the local villages. Hercules hears from an old friend, Marcius, that friends of theirs have traveled to Laurentia but they are not heard from again. Hercules says he will go to Laurentia to find out why.
Hercules comes upon a deserted village and finds the residents hiding in the forest. He meets an old friend, Lemnos, who explains to Hercules why they were hiding in the woods. Adamus, whom they had driven into exile, is back and this time he wants to take all of Greece. Hercules says he will help.
Meanwhile, Iolaus meets Cynea in a tavern, she tells him she is headed to Laurentia. He says he is going the same way and he asks if he can travel with her. At the village, Hercules learns of the dragon, but he says it is strange that the dragon was helping to loot the village. Lemnos tells Hercules that some people think that Adamis has put a spell on the dragon to obey him. Hercules says he will try to talk to Adamis first.
Elsewhere, Adamis hears news that Hercules has come to help the villagers of Laurentia and is pleased as he can nor destroy Hercules in the same place he was once defeated. Meanwhile, Iolaus learns of Zachariah's death from Cynea. He suggests that he and Hercules can defeat the dragon, but she forbids him saying she already feels responsible for the death of Zachariah.
Later Iolaus and Hercules meet up in Laurentia and Iolaus feels they should avenge their friends' deaths but Hercules says they need to find Adamis first to find out what is going on. Hercules tells Iolaus that it is strange because dragons do not leave their lair to hunt and pillage.
Iolaus still wants to kill the dragon for killing his friends but Hercules says the dragon may have acted in self-defense and they should find out the truth before they go to fight the creature. Lemnos finds Hercules and tells him that his son, Gyger has run off with his sword to fight Braxis; Hercules says not to worry, he will bring him back.
Hercules arrives at the dragon's lair, where Gyger is attempting to fight Braxis. When Gyger falls off the cliff, Braxis flies down and saves him. Hercules comes and Gyger tells him that Braxis saved his life. Adamis tells Braxis that he should have killed the boy, telling him that his mother trusted Hercules and Iolaus and it cost her her life.
Later, when Cynea is upset about Zachariah, Iolaus says he will avenge his death and the deaths of his friends. She pleads with him not to go, but he is adamant. She gives him a scarf for luck. Hercules arrives at Cynea's house looking for Iolaus, she tells him that he has gone after Braxis, but did not think he would go alone, and Hercules says he will go after him. As Hercules leaves, Adamis appears from behind some curtains in Cynea's house and it is revealed they have been working together.
On the road, Hercules is attacked by a gang of thugs, and easily beats them all. At Braxis' lair, Adamis comes and informs him that Iolaus is on his way; after he kills him, Hercules will not be far behind. Hercules arrives at Braxis' cave with Iolaus already inside. Iolaus is caught by the dragon and Hercules comes to the rescue. Hercules tries to reason with Braxis and restrains him, Iolaus is prepared to kill Braxis but Hercules tells him that Cynea sent all their friends to the demise in the dragon's lair.
Elsewhere, Adamis tells Cynea that he plans to kill Braxis because when he grows he will have a mind of his own and will not follow his orders. Iolaus is shocked by Cynea's actions. When Cynea and Adamis arrive at the cave they see that Hercules and Iolaus are still alive and Adamis orders his men to kill them. As they fight Adamis holds Braxis hostage and reveals that he killed Braxis' mother. Hercules saves Braxis and tells him to fly back to Tarsus where he will be with his own kind.