Corona receives a new shipment of goods from a nearby kingdom and Pascal finds a new toy in what appears to be a simple marble. By nightfall he discovers that it is actually a dragon egg and it hatches. Although frightened at first, Pascal and the baby dragon instantly become fast and best friends and begin playing until they later fall asleep together in a nearby tree in the castle gardens. Meanwhile, Nigel was rather suspicious of the supposed marble and after a whole night of research, he eventually discovers the truth about the egg and shows it to Rapunzel in the morning. However, by that time when Pascal wakes up, he finds that his new friend has had a major growth spurt and after overhearing Nigel and Rapunzel talking about getting rid of his new friend, Pascal becomes determined to protect him. Pascal attempts to hide him somewhere in the castle, but it is not long until Rapunzel finds out. She realizes first hand the dragon is not a threat and decides to help while naming him, Little Big Guy.
With the help of Eugene, they manage to successfully sneak Little Big Guy out of the castle without being notice and try to teach him how to survive on his own, but do not have much success. However, they do get more info when they learn of Little Big Guy's abilities, including the fact he can share his own traits and gives Pascal his very own horn and pair of wings. By evening, they both attempt to fly, but end up crash landing while accidentally creating a small fire. Soon everyone learns about Little Big Guy's presence, and Nigel, because of his childhood fear of Dragons, leads the Royal Guards on a dragon hunt behind Rapunzel's back. He nearly endangers Rapunzel's when she tries to protect Little Big Guy. Luckily, Little Big Guy manages to learn how to fly, thus saving Rapunzel from falling and gives her and Pascal a wonderful experience as they all fly together. It later turns out that Pascal was helping Little Big Guy return to his family. The two friends tearfully bid each other farewell, and Little Big Guy flies off to reunite with his family, leaving Pascal in tears. Understanding that he still misses his friend, Rapunzel surprises Pascal with a painting of him and Little Big Guy as a wonderful reminder of his dear friend.
- Mandy Moore as Rapunzel
- Zachary Levi as Eugene Fitzherbert
- Peter MacNicol as Nigel
- Sean Hayes as Pete
- Diedrich Bader as Stan
- Susanne Blakeslee as Old Lady Crowley
- The title is a play on Pete's Dragon.
- This episode explains Nigel's fear and hatred towards dragons which were previously revealed in "Be Very Afraid".
- When Pascal hides Little Big Guy in the cupboard it is a reference to when Rapunzel hid Eugene in her closet in the original film, Tangled.
- This is the first episode to air in 2020.
- The show returns to airing in a Sunday morning timeslot of 7:00 am, much like the second half of season 2.