Piggley’s father tells him an old Irish tale about fairies disguising themselves as bugs and playing tricks on anyone who harms them. Soon Piggley and Dannan are convinced that fairies have turned Ferny into a flying beetle after he inadvertently smacks a bug on his arm. While Piggley investigates and experiments with ways to keep Ferny safe, Dannan hits the books to try and find a cure - and Ferny learns how much his friends care about him.

Piggley, Ferny and Dannan rescue an errant egg - which they decide must be a dragon’s egg. They hatch all kinds of plans to keep the egg safe, but when the creature inside emerges, it turns out to be a not-so-sweet wild swan chick. That’s when the real work begins.

Piggley tries to make the most of a bad situation by training his left arm to throw when his right arm is broken and put in a cast, but it’s the help of his friends that enables him to overcome his temporary handicap and win the Ball Toss Contest at the annual School Fair.

Dannan's school bag is chewed. A trial is held in the barn, leading to a potential miscarriage of justice.

A series of misunderstandings leads the villagers of Tara to believe that Don Toro and Ferny are moving back to Spain. They throw them a special fiesta complete with Spanish music, dancing, food, and even fireworks.

Uncle Ferny arrives with a surprise for Grandpa Piggley from the past.

Piggley has a bad dream after listening to a radio show he was told he was too young for.