Generation X is still stuck in the fairy tale character (elves, dragons, trolls, etc.) inhabited pocket dimension from the previous issue. The cigar chomping dragon that appeared at the end of issue eight threatens Skin, but Skin acts like a tough guy and says he's going to go get a sword to slay the dragon, which causes the dragon to roll around on the floor while laughing hysterically.
Inside the castle, Jubilee, Husk, and a spaced out M are working to repair the Grande Dame's Glamour Machine. Skin tells the Grande Dame that there's a dragon outside, and she seems a little surprised and explains to Skin that the dragon is a bully that eats their air with his fire. This does not sit well with Skin who explains that his mother raised him to never back down from a bully. Skin goes back outside to find the dragon wiping away tears from laughing so hard.
The dragon asks Skin where his sword is, so Skin once more goes into the castle. Penance, who has been outside the castle with Skin and the dragon the entire time, is not able to completely understand what is going on, but is beginning to trust her Generation X teammates.
Meanwhile in the dungeon of the castle, Banshee is complaining to Emma Frost about her use of psychic powers to "turn off" a troll's mind. The two of them continue to bicker, much to the annoyance of Eamon, the other prisoner that they are escaping with. Suddenly the trio is attacked by another troll who grabs Eamon. Banshee relents and tells Emma to use her powers, but she tells him to deal with the troll himself.
Nearby, Chamber and Synch arrive at their elven travelling companions' village. Synch is a tad annoyed and says that he wanted the elves to take him to his home. The elves say that they know but want the two boys to save the O'Donnel Clan. Both Chamber and Synch explain that they aren't really heroes, only freshmen students, but a Tiny Tim-esque elf makes puppy-dog eyes at Chamber and he agrees to help. The boys suddenly hear Banshee's screech and break through a wall to see a troll menacing their teachers.
Elsewhere, Skin has the dragon's face wrapped up with his gigantic hands. The dragon offers Skin a job, but Skin turns him down saying he already has a job, "kicking dragon butt." As the two wrestle, Penance lurks behind a tree, wondering how she can help.
Back inside the castle, Jubilee voices her concern about M. Husk tells Jubilee to be careful or people will think Jubilee actually cares about M. M suddenly flies off, and Jubilee wonders if its the stress that causes M to space out, before saying that none of the rest of them have experience dealing with these kind of adventures either. Husk thinks that M is just really focused on fixing the machine and is blocking everything else out.
The two girls determine that they will have to fix the machine without M's help, so Husk peels off her skin revealing some kind of metallic form underneath. Jubilee uses her fireworks on a rusty handle and Husk opens the machine's door. The Grande Dame tells them that she would hug them if it wasn't so beneath her.
The castle doors suddenly burst open and Banshee, Emma Frost, Synch, Chamber, and a bunch of elves come in. Banshee declares that he's there to free Jubilee and put an end the Grande Dame's reign of terror over the elves. The elves yell labor dispute slogans briefly before the Grande Dame says that the Glamour Machine is nearly fixed at which point they begin to cheer. M snaps out of her spell and says that the machine can't be fixed.
Outside, the dragon has gotten the upper hand, and is about three seconds away from burninating Skin. With a second left on the clock, Penance sneaks up behind the dragon and stabs him with her diamond sharp tendrils in his behind.
Back inside, M explains that the machine is fixed, but it is lacking a power source. Banshee asks about using his scream, but M says it's too physical. Emma asks about using her psychic power but M says it's too impure. Like Goldilocks, Chamber decides that his power is just right and climbs into the machine and powers it up.
The elves all rejoice at the return of the glamour and Skin comes into the castle, asking if the elves are so excited because of the dragon he beat. Emma tells him to stop trying to steal Chamber's thunder. He and Penance turn to each other and kind of shrug.
That night there's a party, but M and Emma are not in attendance. Husk worries that they won't be back before the castle returns to the real world at sunrise, but Banshee tells her not to worry. Out on one of the castle's towers M glowers about not living up to the standards she sets for herself. Emma tells her that without her creative thinking, Chamber wouldn't have been able to solve the problem. M tells Emma that she doesn't Emma to feel sorry for her. Emma tells her not to worry because she would never feel sorry for her.