Flicker shows Princess Flame his new invention, the magic net (magnet) which is powered by a potato resembling Sir Loungelot. When Flicker turns it on, it affects his armor, pulling him to the magnet along with Flame. Queen Griddle enters and thinks Flicker and Flame are kissing, and has Flicker taken to the dungeon. Enraged at the idea of Flame in love with someone who isn't rich, Griddle announces a tournament in which the winner will receive Flame's hand in marriage.
In the dungeon, Flicker meets prisoners Racka and Presley. He is confident that Loungelot will rescue him, but Loungelot has fallen in love with Flicker's potato, not even noticing his squire is gone. Flame takes Flicker's magnet to the dungeon, and Flicker connects it to the potatoes growing on Racka's back, causing the magnet to take the bars off the tournament door. Once Flicker is out, Racka puts the bars back on the door, as he and Presley prefer to remain in the dungeon.
Flame asks Flicker to compete in the tournament as a mystery knight, but he refuses, claiming that the Code of Chivalry forbids him to impersonate a knight. Flame bashes him on the head with his sword and flies away.
The tournament begins. It is a jousting tournament in which the contestants' armor is equipped with a fake horse. A mysterious Black Knight appears and easily wins every match. Griddle wants the Black Knight to win, and Flame seems infatuated with him, which Flicker doesn't like, until he sees Count Geoffrey and Merle the Wizard disguising Evil Knights 1, 2, and 3 as a mystery knight.
Flicker tells Flame that the Black Knight is the Evil Knights, but she doesn't believe him, so (after the Black Knight has defeated all the other contestants) Flicker enters the tournament as the mysterious White Knight to prevent Geoffrey from winning Flame's hand in marriage (though his armor is pink due to a red sock being put in the wash). As he faces the Black Knight, he discovers that the Black Knight is Flame, competing in the tournament to avoid marrying any of the others. She wishes to throw the match to Flicker, but he refuses, claiming the Code of Chivalry forbids him to beat up a weak defenseless girl. Flame, who is anything but weak and defenseless, bashes him on the head with her lance in an involuntary reaction.
Then the Evil Knights, as the Brown Knight, face Flame and "unhorse" her by setting a swarm of moths on her which eat away the fake horse. As they are about to grind her to pieces with a device called "The Juicer", Flicker sets his magnet above them to take their armor off, revealing their identities (and presumably redeeming himself in Griddle's eyes). In a rage, Griddle leads a mob of dragons after the Evil Knights, and she and the dragon knights beat them up after Geoffrey and Merle teleport away.
Flicker and Flame swordfight into the distance, thus the final two contestants for the tournament disappear and it ends in a draw, much to Griddle's disappointment (as she loves mystery knights). Flicker and Flame throw their armor into the moat and begin fishing.