This film, continuing the concept of the hit film "The NeverEnding Story", chronicles the further adventures of Bastian Bux (Jonathan Brandis). After failing to successfully complete a dive in school, he returns to Koreander's (Thomas Hill) bookshop and take The NeverEnding Story back home. The Childlike Empress (Alexandra Johnes) begs Bastian to return to The NeverEnding Story and save the world. After returning, the evil Xayide (Clarissa Burt) tries to seduce Bastian and take over the world for herself. Meanwhile, elements of the stories are disappearing from the real world, as the record of the NeverEnding Story disappears. Time is short for Bastian to save both worlds, if he can resist the temptation.