Grandpa teaches Zete and Rika the well-known symbols of the Transylvanian gates and their meaning. The kids learn about the resourceful, crafty, and unique people who still live here, surrounded by the extraordinary and awe-inspiring landscape. Grandpa tells Zete and Rika about the strange noises coming from Single Stone Mountain. According to the local legend, the Devil is tied to the mountain with a binding agreement. After listening to Grandpa's tale, the kids secretly set off to discover the cause of the mysterious roar. A glowing horseshoe falls from the mountain...

Zete and Rika safely arrive home at their grandfather's house, excited to show him their fabulous find. Grandpa instantly knows that what they brought home has great importance not only to them but to the Devil too. If he grabs it, he will have a chance to get rid of the old binding spell and finish his plan to destroy all the legends from around the World. Grandpa tells them the Transylvanian myth about the creation of the Milky Way, locally known as the Starry Path. They learn the story of the Magic Horseshoe, and how it came into being in this part of the World. ...

We learn the history of Grandpa's Fable Tree, and we have a chance to get a glimpse of its inner wonders with magical instruments. We'll find out why the Fable Tree is in Grandpa's garden and its importance in the series. The Fable Tree will be the centre of the events, providing the gateway between the Present World and the Realm of Legends. It is a safe place from the Devil and much more because the Fable Tree's roots branch out to the locations of the stories. Our heroes can quickly arrive at different places to rescue the endangered legends.

After many unsuccessful attempts and failures, to gain access to the Magic Horseshoe, the Devil realizes that he cannot carry out his plan alone. He learns from his magic book of spells that ugly gnomes live in caves in the Transylvanian Mountains. There, they are waiting to emerge and rule the world when the human race becomes extinct. With a half-successful spell, the Devil manages to create Totty and Dotty, two ugly gnomes, who also prove to not be too smart.

The Devil and his helpers set a trap with a giant millstone created by the Devil's spell to catch Zete and Rika and take the Magic Horseshoe from them. We get to know a new local legend about a known landscape feature in Transylvania, attributed to the Devil: the Devil's Ditch and the Rooster's Groove. They are so engaged, setting up the trap that they do not see dawn reaching them. Before the rooster chants morning, just like Count Dracula. The Devil must escape the first ray of the sun.