The Caballeros head to Stonehenge, which is the secret portal to Goblin Town. Once inside, the new Goblin King Felldrake sentences them to Goblin Jail and then demands that the goblins go to war. When their weapons prove unsatisfactory, Felldrake unleashes an unstoppable war beast. The Caballeros must recover Xandra's book and escape Goblin Jail before the beast reaches the portal back to Earth.
- Lucifer, in a monstrous green form, makes a cameo when the goblins demonstrate their flaming cat-apult.
- One of the goblins bears a resemblance to Creeper from The Black Cauldron.