Percy is still ribbing Thomas about the time he thought Percy was a ghost. Thomas pays no attention, and one night is asked to collect a special load from Brendam. Thomas is horrified to find it is a dragon, but his driver tells him it is made of paper and is needed for a carnival.
Meanwhile, Percy is stuck in a siding while shunting and has to stay there for the night because of jammed points. Thomas passes by with the dragon and Percy is so terrified that he doesn't sleep at all.
The next day Percy sees the dragon again, but is indignant when he sees Thomas pushing it. Thomas explained what happened and the two make up their teasing.