Poppu and Fly arrive in the haunted forest and meet FUAM another disciple of Aban. But they are soon noticed by the armies of Ban. The haunted forrest is the headquarter of KROKODIN. He's the leader of the army of beasts. He finds Fly and starts a duel against him. Fly has to fight Krokodin alone because Poppu fled away. Fortunately Fuam can help Fly with her magic gun and Fly wins the duel. He wounds Krokodin in his left eye. Krokodin swears to beat Fly next time.
After the battle they go to Fuam's village to rest a bit. In the meantime SABOERA, the cardinal of wizards, captures Burasu to let him fight against Fly.
Fly, Poppu and Gome leave the village together with Fuam. They arrive at the castle of Romusu, but as it is late they are not allowed to enter the castle. They pass the night in a hotel. The next morning Krokodin attacks the castle with his entire army. Fly immediately leaves the hotel for the castle. Fuam wants to go too, but Poppu is frightened at the idea of going there and stays at the hotel. Fuam is profoundly deceived by Poppu's attitude and swears never to see him again.
At the castle the battle has started and Fly is in rather bad situation. Krokodin had a magic tube within which Burasu, Fly's grandpa, was enclosed. Because Burasu is under the influence of Hadora's magic out of the protecting dome of Demurin, he turns bad and begins to fight Fly. The whole plan originates from Saboera's mind, who knows that Fly won't hurt his grandpa. Krokodin takes advantage of the situation and uses his secret technique to defeat Fly. But the latter survives.
Poppu receives the visit of a magician who gives him courage again. Poppu thanks the old man and runs to the castle to help Fly and Fuam. He fights the best he can against Krokodin, but he's too strong for Poppu. But Poppu manages to invoke Mahokatoru to protect Burasu. Poppu falls on the ground from exhaustion. He is at Krokodin's mercy. But at that moment Fly stands up surrounded by a magnific golden aura. The dragon's sign appears again!! Krokodin tries to stop Fly with his axe, but Fly can stop it with his bare hands. A blue aura is now surrounding him and his able to throw the enormous Krokodin away. Even Krokodin's secret technique was countered by Fly's Aban slash. The defeated Krokodin begs pardon to Fly and his friends.
Fly has won the battle against Krokodin. He asks the king of Romusu to have a ship to go to Papunika where he wants to rescue Leona. The generous king accords him a boat and he even gives Fly and his friends a new equipment.