Five friends Robert, Eliza, Cyril, Jane and Anthea discover a magical carpet and a very strange looking egg.
The children are studying the egg when Robert accidentally knocks it into the fire in the fireplace. To their amazement a bird hatches from the egg. It is a Phoenix who last appeared on Earth over 2,000 years ago.
The children discover that the carpet has the ability to grant wishes and transport them to wherever they desire. They decide to test the carpet and use a wish to take a long trip with the Phoenix across the sea. They then use another wish to have the carpet take them to a tower that they fly over.
As part 4 opens the children use a third wish to get Robert out of a jam. They soon discover that the tower is totally sealed up. They find an old door that has been covered by a wall. They manage to break the wall and door open and the boys go exploring outside. Inside the girls find a sealed box. Whey they pry it open they discover it is full of gold coins.
As this episode begins the boys return to the tower and learn of the discovery of the gold coins. They decide to take them home with them and prepare to leave. Robert then notices that he left his jacket outside and goes to retrieve it. It is getting darker by the minute and Robert is confronted by several ghosts. The children make a wish for the carpet to take them back home but nothing happens. The Phoenix tells them that they only get 3 wishes from the carpet and they have used them all. As the episode closes the children huddle in fear as they hear the ghosts approaching and getting closer every second.