Pete, a young orphan, runs away to a Maine fishing town with his best friend a lovable, sometimes invisible dragon named Elliott! When they are taken in by a kind lighthouse keeper, Nora, and her father, Elliott's prank playing lands them in big trouble. Then, when crooked salesmen try to capture Elliott for their own gain, Pete must attempt a daring rescue. An orphan boy and his magical dragon come to town with his abusive adoptive parents in pursuit.