Episode 2 (Zwei) takes place three years later. Whereas Episode 1 both Bill & Veselka were nine years old, they're now twelve. This time a thunderstorm swirls around Seattle, Lightning strikes on the two and instead of killing them, they're summoned onto Ozber – an amalgamation of Oz and Slumberland – not unlike Neverland they once called filled with wonder and awe.
Though they're falling at the moment, it won't be long as a Cockatrice named Reginald rescues them. They can't believe their eyes on what thing and world they're in now and what's going on here in particular.
When they ask Reggie what this place is and what's happening, he'll take them to the Emerald City as their only means of protect; plus it's king is the only one he knows who can explain to the kids proper.
He drops them off and are greeted by Morpheus, King of the Emerald City and current caretaker of Ozber. The kids asked why they're here and wonder about the connections between the lightning strikes back on Earth and on Ozber. Morpheus realizes these are the works of The Nightmare King and gives the children some tools and armor they need to destroy him and separate the two worlds from merging.
Speaking of, The Nightmare King dispatches his flying monkeys down to The Emerald City, intent on capturing the kids and bring them over to his domain. Instead, Reggie returns and picks them up, taking them somewhere else to safety and evading the pursuing Monkeys.
They look back to see the Emerald City encased in a red glass dome, trapping the inhabitants and capturing Morpheus.
It's now Ozber against the three unlikely heroes.
All they can do now is find someone else to keep them safe and train for their assault on The Nightmare King's domain, if they can find it.
Fortunately the trio found help, in the form of Glinda of the South, Locasta of the North, Miranda of the East and Theodora of the West. While the first two are optimistic about the two's potential and their return to their world, the last two are more cynical and skeptical given The Nightmare King's powers.
Plus, they've taken their territory before they could do anything to rule over the Land.
To prepare themselves for the battle, both Bill & Veselka train, but to also learn from Glinda of the three virtues: Compassion, Courage and Intelligence.
Intelligence: To use wits against obstacles that cannot be solved with Compassion or Courage: trickery and tactics for example.
Courage: To overcome fear and horror that cannot be solved with Compassion or Intelligence: To help the suffering and battle the oppressing for example.
Compassion: To tend the weak and poor that cannot be solved with Courage or Intelligence: healing injuries and speak wisely for example.
With these virtues learned and their sights set towards The Nightmare King's Domain, two (of four) witches wishes the children good luck on defeating him, free Morpheus and separate the two worlds from his powerful magic, riding on Reginald once more!
Once entered, they witness the humans of Earth as brainwashed soldiers for The Nightmare King. They tried breaking the spell, but it's prove too powerful to be done. Instead, they trap them into their prison cell, scheduled for brainwashing. What they didn't count on is a device Veselka hides in her pants' sidepocket (gifted by Morpheus and hid it before launching on Reggie with Bill) to break out of the cell and out to get both Morpheus & Reggie out, so only the two of them can destroy The Nightmare King.
But with them freed and the two ready to defeat him, The Nightmare King manipulates Bill. taunting him that he means nothing and belongs to no one. Only he, the King himself can make him a someone, give him something of purpose and meaning; by killing Morpheus and then Veselka.
But then Reginald comes back and strikes at the Nightmare King, telling the kids to kill him instead, not only to save both worlds but to get them back home.
Together, Veselka & Bill use their magic devices to destroy The Nightmare King with Intelligence: Tactics and Courage: Might! With his death, the two with the freed Morpheus held by one of the freed Flying Monkeys (he already redeemed upon his freedom and ridded on Reginald before he flew to aid the two kids), combine their Compassion magic to heal the damage The late Nightmare King did to Ozber, which also heals the effects on Earth.
As promised, the two kids are granted access back to Earth, all they have to do is think of their homes: Seattle, Washington. And in a quick, passing moment, the two are back like before only with memories of Ozber still with them for years to come.