While asleep in her bed one night, Jilly was kidnapped along with Jimmy from their village by the goblin Prince Catalus, who was under orders from his sister Queen Vulpecula Huntar to return them to Castle Morbidden so that she could hunt them.
On the way the castle, Jilly and Jimmy were convinced that Catalus was a friendly goblin and that he was taking them to play "hide and seek" with the queen. They were further told by Catalus that they were going to help them play a prank on the queen by hiding so well that she could never find them. During the trip, Jilly and Jimmy were appeased by being allowed to drink all the lemonade they wanted, stay up as long as they could and to play with his sword. When the party made camp on a beach during the trip, Tails arrived to rescue Jilly and Jimmy, but the two fox cubs convinced him to join in on the joke.
Eventually, Jilly, Jimmy and Tails reached Castle Morbidden, where Queen Vulpecula began hunting them through the halls following their introduction, which made Jilly and Jimmy why they were brought here. Eventually, Jilly, Jimmy and Tails were caught by Queen Vulpecula, but were released so that she could hunt them again. When they found Catalus' hiding place, Catalus planned to kill them to deprive his sister of the pleasure of doing so first. Jilly, Jimmy and Tails managed to evade Catalus' attack, and were chased them onto the roof, where Tails was able to fly Jilly and Jimmy over to Catalus' ship. They escaped the castle and returned home, where Jilly and Jimmy were reunited with their tearful mother.