Billy, joined by his friends Mandy, Devin and Danny, continue their adventure from the previous movie in the series, The Mystical Adventures of Billy Owens. With the help of their magical professor, Mr. Thurgood, the children are still learning about their new powers. When the carnival comes to town, we learn that Professor Mould has used the children to trap the soul of Mr. Thurgood in a magical amulet. As the legend goes, inserting the amulet into the scepter will result in the unlocking of the magical powers of the scepter, and release the treasure of the god Loki.
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