Nicholas St. North, a daredevil swordsman seeking treasure in the fiercely guarded village of Santoff Claussen finds, instead, the great wizard Ombric Shalazar and a battle against the Nightmare King and his evil Fearlings--a battle Nicholas can win only if he finds five other Guardians in time.

Accompanying his young human everywhere, a favorite toy rabbit named Ollie crosses paths with a bitter amusement park prize, Zozo, who escapes and seeks revenge on more popular toys.