Plot

Profion, a tyrant, attempts to overthrow a peaceful kingdom ruled by a tough empress.

The Empire of Izmer has long been a divided land. The Mages - an elite group of magic-users - rule whilst the lowly commoners are powerless. Izmer's young Empress, Savina, wants equality and prosperity for all, but the evil Mage Profion is plotting to depose her and establish his own rule. The Empress possesses a scepter which controls Izmer's Golden Dragons. To challenge her rule, Profion must have the scepter, and tricks the Council of Mages into believing Savina is unfit to hold it. Knowing that Profion will bring death and destruction to Izmer, Savina must find the legendary Rod of Savrille, a mythical rod that has the power to control Red Dragons, a species even mightier than the Gold. Enter two thieves, Ridley and Snails, who unwittingly become instrumental in Savina's search for the Rod. Joined by a feisty Dwarf named Elwood, and helped by the Empress's expert tracker, the Elf Norda, the young heroes go in search of the Rod of Savrille. From the deadly maze of the Thieves Guild at Antius to an Elven Village, secret grotto and abandoned castles, Ridley and his band must outwit Profion's chief henchman Damodar at every turn while, back in Izmer, Profion prepares to do battle with the Empress. All depends on the Rod, but the outcome of the race to reach it first is far from certain, and Izmar's very survival hangs in the balance.—Wizards of the Coast

Emperess Savina rules over the magical empire Izmer. The young thieves Ridley and Snails get involved with her quest to find the legendary Scepter of Savrille. With this most desirable magical wand she could have the power to rule over the Red Dragons and she would then be able to provide freedom and equality amongst all people. Ridley and Snails are closely followed by Damodar, the cruel assistant of Profion who is longing for the power of the Scepter. Profion wants to get into battle with the Emperess. Whenever Profion would get his hands on the Scepter, the whole empire would then forever live in darkness. The future depends on the braveness of Ridley and Snails...—ItsPeet

Emperess Savina Rules over the magical empire Izmer. The young thieves Ridley and Snails get involved with her quest to find the legendary Scepter of Savrille. With the power to rule over the Red Dragons and she would then be able to provide freedom and equality among all people. Ridley and Snails are closely followed by Damodar, the cruel assistant of Profion who is longing for the power of the Scepter. Profion wants to get into battle with the Emperess. Whenever Profion would get his hands on the Scepter, the whole empire would then forever live in darkness. Profion launches war on empress. Ridley gets the scepter but has to surrender to Damodar to save his friends. He then fights Profion and destroys the scepter. The empress's dragon kills Profion

The Empire of Izmer has long been a divided land. Ruled by the Mages, an elite group of magic users, who oppress the lower Commoners. The antagonist of the film, an evil Mage named Profion (Jeremy Irons) creates a scepter that allows him to control Gold Dragons. He tries it out on a golden dragon, but the dragon breaks the spell on the scepter, and starts killing Profion's minions. Profion kills the dragon, which bleeds into the river, causing it to catch fire. Many of the inhabitant's notice, entering the protagonists of the film, a pair of thieves named Ridley (Justin Whalin) and Snails (Marlon Wayans). Ridley wants to give the Mages some "payback", and Snails mocks Ridley by calling him "Ridley the Savior". They conspire to break into the Magic School, the elite learning place of the Mages, and steal magic items.

Later, Profion and the Council talk about the controversial views of Empress Savina (Thora Birch); who wants to stop Profion and free the commoners, who are non-magic users. Meanwhile, Ridley and Snails break into the magic school and begin to steal magical items but are caught by a young Mage named Marina (Zoe McLellan), who casts a spell on them which ties them together with an invisible rope. She gets distracted and pulls Ridley and Snails along with her when the Library wizard is held hostage and interrogated by Profion's henchman, Damodar (Bruce Payne), for info on where the map to a magic scepter, called the Rod of Saville, that can control Red Dragons is. He refuses to talk and sends the map to Marina and is at once killed by Damodar. Marina gets the map and travels through a magic portal to escape, dragging Ridley and Snails with her. After crashing into a pile of garbage, they meet a dwarf named Elwood (Lee Arenberg), who ends up joining Ridley, Snails and Marina escaping through a sewer.

Damodar puts a price on Marina, Ridley, Snails and Elwood's heads. After letting Profion know that the protagonists got away with the map, Profion creates a tentacled monster inside Damodar's head. The protagonists hide in a tavern and read the map when Ridley and Marina get sucked into it. Damodar and his henchmen arrive and attempt to capture Snails and Elwood as well as obtain the map, but they manage to get away. Outside the inn, Ridley and Marina exit the map and all decide to work together to find the Rod of Saville. They have to find a red ruby called the "Eye of the Dragon" that can open the door to a tomb where the Rod rests.

The ruby is located in a hazardous maze that is owned by a thief named Xilus (Richard O'Brien) who'll give the protagonists the "Eye of the Dragon" if Ridley survives the maze and obtains the ruby. Ridley manages to get the "Eye of the Dragon", but Xilus then attempts to take the ruby by force when Damodar shows up. Marina gets captured while Ridley, Snails and Elwood escape, meeting an elf named Norda (Kristen Wilson) who works as a tracker for Empress Savina and informs the Empress about Profion's plans to get the Rod of Saville. Meanwhile, Damodar tries interrogating Marina, but when she refuses to talk, Damodar uses the tentacles of the monster in his head to gain the knowledge he seeks.

Ridley and Snails break into the castle where Marina is imprisoned to rescue her, while Norda and Elwood stay behind. Ridley and Snails split up and Ridley finds Marina. Snails falls into a quicksand trap in Damodar's room after finding the map and some magical powder. Snails is then chased through the castle by Damodar, while Ridley and Marina fight to get back out. They follow Snails and Damodar to the roof where Snails is killed by Damodar when he throws the map to Ridley. Ridley becomes enraged at Damodar and attacks him, but Damodar disarms him and stabs him in the shoulder with his own sword. In the confusion Marina grabs some of the magic dust that Snails pilfered and casts a spell to knock down Damodar and picks up Ridley. She then uses a portal to help them escape, leaving the corpse of Snails behind. Back at the council chambers, Profion and Empress Savina battle over the future of Izmir.

Meanwhile, an elf (Tom Baker) heals Norda's soldiers and Ridley. Ridley has a dream of a dragon being born and learns that if Profion and Savina go to war, it will tip the balance of magic in the world. Later, Ridley accuses Marina of being an "evil Mage", because of the Mages' oppression of the Commoners. Marina tells Ridley that he is wrong, and that the Empress is trying to solve all of the things that Ridley hates. Eventually, they become love interests and Ridley uses the "Eye of the Dragon" to finally get the Rod of Saville, which is held by the Skeleton of Saville in the tomb.

The skeleton comes to life and warns Ridley that "anyone who wields the power of the rod shall suffer a horrible fate". Meanwhile, Damodar arrives outside and captures the other three companions. When Ridley comes out, Damodar requests the Rod in exchange for his companions. Ridley gives the Rod to Damodar, who orders the execution of Ridley and his companions; then turns to leave to complete his mission. Norda stabs her guards with hidden knives, frees Marina and Elwood and they all follow Ridley to the capital city of Sumdall.

Meanwhile, in Sumdall, Profion uses Mages to fight the Empress. Savina calls forth Gold Dragons and they fight the Mages. Damodar shows up with the Rod, and Profion reluctantly frees Damodar from the creature in his head (this is addressed in Wrath of the Dragon God). Profion then climbs to a high platform to summon Red Dragons to fight the Gold Dragons. Ridley arrives and battles Damodar, stabbing him and throwing him from the ledge, avenging Snails. He then attacks Profion, who disarms him and shoves him back. Ridley's companions arrive and fight Profion one at a time. Ridley picks up the fallen Rod of Saville and fights the power it holds.

Profion encourages Ridley to use the Rod, but Ridley refuses and destroys it. Empress Savina arrives and condemns Profion, having a Gold Dragon come and eat him. She praises all of the adventurers, hailing them as heroes.

Ridley later visits Snails' grave (with a voice over of Savina telling the people of Izmer that they are now all equal), where he tells Snails that he is now "Ridley the Savior", echoing Snails' claim at the beginning of the film. Snails' engraved name then disappears and Norda tells Ridley not to question his abilities. Ridley, Norda, Marina and Elwood then touch the "Eye of the Dragon" and dissipate magically, ending the film.