Bastian reaches a part of the story that he cannot bring himself to read, but Coreander encourages him to do so. Mr. Blank accuses Bastian of plagiarizing Oliver Twist word-for-word, even though Bastian protests that his report was on the Journey to the Center of the Earth. Bastian and his friends soon discover Bastian's actual report, and conclude that Mr. Blank forged his report. In the story, Atreyu decides to search for the Luckdragon, and Artax loses his life in the City of Old Emperors. When he finds the Luckdragon, he finds that it is a contraption being flown by Fly Girl, who is on a quest of her own.

Based on Michael Ende's 1979 novel The NeverEnding Story – a classic tale of one boy and an old book that sweeps him into the enchanted world of Fantastica, which he has been chosen to save.