After convincing the driver to leave, Dougal accidentally starts a cart up again and causes it to collide with the titular magic roundabout at the center of the village.
A blue jack-in-the-box-like creature emerges from the top and flies away, snatching a decorative Foot Guard figurine from the roundabout before leaving. The roundabout freezes over, trapping repairman Mr. Rusty, Dougal's young owner Florence, and two other children named Basil and Coral within an icy cell.
Dougal wanders off during the night and is captured by Zeebad.
Ermintrude breaks him out of his prison; after a short chase, Zebedee shows up to battle his evil counterpart. Zeebad gains the upper hand and overpowers Zebedee, freezing him and collapsing the cliff on which he stands making it appear as if he died however it is revealed later he was only injured not dead as previously assumed.
Dylan uses his martial arts skills to defend himself against a large amount of moving skeletons trying to attack the animals, Ermintrude also attacks at least one, the skeletons have the ability to regenerate and combine into one larger, scarier, more powerful skeleton it falls though a trap on the floor but later attacks the friends after they've left on Train, however they narrowly escape.