Original Airdate: ?/?/1983
At Dragon Valley Skeletor and Beast Man steal several of the Mother Dragon's eggs. When the Mother Dragon attacks, Skeletor destroys the ground beneath her and she falls. Beast Man takes the eggs in a vehicle and departs.
Meanwhile at the Royal Palace, Orko is entertaining the Royal Family at dinner. Suddenly a crashing sound is heard from outside. The gathering investigate, and they find a dragon's egg on the palace grounds. The egg hatches and a baby dragon appears, growing to full size in a matter of seconds. The dragon blasts the palace with fire. Teela takes the King and Queen to safety while Adam transforms, despite falling debris, into He-Man. He and Battle Cat tackle the dragon with the help of Teela and Ram Man. Man-At-Arms brings his new Stasis Ray just in time, freezing the dragon.
At Snake Mountain Skeletor revels in his handiwork, as baby dragons grow to full size, due to Skeletor's growth serum, all across the planet. Teela and Orko fly in a Wind Raider and use the Stasis Ray to freeze another dragon. Stratos reports that a dragon has invaded Avion. At Snake Mountain Skeletor and his Evil Warriors journey to Castle Grayskull. Upon arrival Skeletor challenges the Sorceress outright with the Dragon Pearl which magnifies Evil-Lyn's magic by a hundred times and overwhelms the Sorceress. The guardian of Castle Grayskull is seized and trapped inside the pearl. The Dragon Pearl focuses the Sorceress' power and opens the jaw-bridge.
He-Man and his entourage arrive at the castle just in time for Skeletor to seal Grayskull with a force field and declare victory. He-Man has the idea of uniting the dragons to break the force field. He and Teela go to Snake Mountain to confront Beast Man, and defeat him quickly, all the dragons now freed from Beast Man's power. He-Man sends Teela back to Grayskull with the dragon and promises to attain the help of the Mother Dragon. The dragons unite and thrust their collective fire against Skeletor's force field and burn through it.
The Heroic Warriors attack Skeletor, but he escapes through a space portal. Skeletor picks up the Dragon Pearl in Snake Mountain, where he had hidden it. He-Man confronts him, and the two battle outside the fortress. Skeletor uses the energy of the Dragon Pearl to enlarge himself. When he falls off the edge of a cliff, He-Man grabs his hand and saves his life. He helps Skeletor reach a safe landing. A dragon surprises Skeletor, and he drops the Dragon Pearl into Blood Falls. The villain makes a quick getaway, while the dragon dives into the falls and rescues the pearl. The dragon's fire burns through the Dragon Pearl and frees the Sorceress. He-Man and Zoar return to Castle Grayskull, where the dragons walk through a portal to return to their home.
Synopsis by Zadoc Angell