- The Diamond Sword of Goman -An archaeologist finds an ancient sword said to give its possessor invincibility. Skeletor decides it must belong to him, and he goes after it and steals it. He-Man comes to retrieve the sword and after a tough battle, wins.
- The Missing Artist -Eternia's greatest artist, Ahktar has gone missing, and at the same time, King Conbar of The White City of Menod declares war against Eternos when he is presented a plan, drawn by Man-At-Arms, to attack The White City. He-Man knows Man-At-Arms has done nothing of the sort, and becomes very suspicious when he finds it was Skeletor who gave Conbar the plans. Teela finds Ahktar held prisoner by Beast Man, and he reveals that Skeletor forced him to imitate Man-At-Arms' design, so Skeletor could get Conbar's army to fight Eternos. In Conbar's palace, He-Man and Teela confront Skeletor and foil his scheme.
- The Waking of Gorgon - Mer-Man is forcing the people of a fishing village on the west shore to sell their boats so they can give him the money. If they do not pay him, he releases Gorgon, a demon from the deep, who turns the villagers to stone. He-Man and Man-At-Arms confront Mer-Man, who releases Gorgon. He-Man does battle with the creature, deflects its power and turns it to stone, and the village is safe.
- Three Times Trouble- In a new base in a ruined gothic monastery, Skeletor reveals to his henchmen that he has created two robot replicas of himself. He sends Tri-Klops to tell He-Man and Man-At-Arms, and they journey to the monastery and are confronted by the creations. But He-Man wins and smashes them to pieces.
- The Flying Sword - Told in comic-strip form, this story features Skeletor being told by three witches that He-Man will fall to Skeletor unless his sword can fly. Since it can't, Skeletor concludes that he will defeat He-Man, and kidnaps the children from the village of Maxor, taking them to Snake Mountain. He-Man journeys to Snake Mountain, and Skeletor orders him to drop his sword and enter unarmed. But before he can do anything, Zoar picks up the sword and gives it back to He-Man, showing it can fly.
- The Three Tasks of He-Man - Skeletor interferes with the magnetic fields around Eternia, causing the weather to become permanently cold and icy. A half-woman, half-lioness tells Stratos that this evil will be undone by Zodac, the cosmic enforcer if a mountain is moved, the sea is stopped and a moon is caught. He-Man goes out to do these seemingly impossible tasks, finds clever ways of doing them and returns the weather to normal... probably the best story in this book.
- The Flowers of Molock- In the flower-growing mountains of Molock, a type of flower is grown that has the power to send people to sleep. When Skeletor hears of it, he sends Beast Man to steal the flowers, but Beast Man bungles up the task when he sniffs them and falls asleep. Luckily Tri-Klops rescues him and brings the flower to Snake Mountain. At the New Year Ball at Eternos, Evil-Lyn goes disguised as Princess Lorama of the Flower People, and presents everyone with one of the flowers, sending the guests to sleep. Skeletor then goes about stealing the people's riches, but He-Man and Teela burst in and defeat the villain.
- Skeletor Strikes- Skeletor and Evil-Lyn capture lots of children to work as slaves. He is visited by an old man who is buying children to use as cheap labour, who offers him two bars of gold for each child. But the old man is really Man-E-Faces in disguise, and he reports what he has found to He-Man and Man-At-Arms. The good guys attack the caves where the children are kept and beat up the bad guys.
- The Shield of Vono - A game at the end of the book (Page: 62 - 63)
(The 1987 annual was the point where the writers and artists hopped on board Filmation's style. Nearly every single picture in the book is in the style of Filmation with a bit more detail. A lot of model sheet poses appear in this book. The later half of the book, while still in the same style has a lot more detail. This was probably the best annual for fans of the cartoon.)