Kayley's father, Sir Lionel, is one of the knights of the Round Table. Kayley wants to be a knight like her father and serve Camelot. Tragically, Lionel is killed while defending King Arthur from the greedy Sir Ruber, who wants more land than everyone else. Ruber flees Camelot after being beaten back byExcalibur. After Lionel's funeral, Arthur tells Lady Juliana, Lionel's widow, that she and Kayley will always be welcome in Camelot.
After ten years, Ruber's griffin attacks Camelot, injures King Arthur, and steals Excalibur. Merlin's falcon Ayden attacks the griffin and the sword falls down into the Forbidden Forest. A horn is sounded signaling across the country that Excalibur has been stolen. Meanwhile, Ruber, who plans to use Excalibur to usurp the throne, and Darla, who wants to destroy every single animal since they took her spotlight, goes to Kayley's home. They hold everyone hostage and uses Darla's dark magic to combine Ruber's human henchmen (and a chicken) with weapons (maces, crossbows, flails, axes, etc.), creating metal warriors. He then takes over the village and captures Juliana. He plans to use her in order to gain entrance into Camelot. Ruber's griffin tells him that Ayden caused him to drop Excalibur into the Forbidden Forest and Ruber grows even angrier when Kayley escapes from his clutches.
Kayley finds herself in the Forbidden Forest. Determined to find Excalibur, she winds up falling down a trap and meets Garrett, a blind hermit, and Ayden, his falcon friend. Kayley convinces him to help her find Excalibur with her. She then learns about Garrett's past: he was once a young stable boy in Camelot. The stable caught fire and he was blinded while rescuing the horses. Yet Kayley's father still believed in Garrett and taught him to adapt.
They travel to Dragon Country and meet the comic relief two-headed dragon named Devon and Cornwall. Devon and Cornwall don't like each other, can't breathe fire or fly (which is why they are bullied by other dragons), and both want to be individual dragons. After escaping other dragons and Ruber and his men, Devon and Cornwall decide to join to the group after they broke the dragon code of helping humans. Garrett reluctantly agrees after Kayley manages to convince him.
Later, they discover that Excalibur is no longer where the griffin dropped it. Kayley is distressed and babbles on while Garrett warns her to be quiet. Because she is talking, he cannot hear the approach of Ruber and his cronies, one of whom wounds Garrett with an arrow. Kayley drags Garrett away as the thorn bushes grab Ruber and his men and hold them captive.
Juliana worries about Kayley as Kayley drags the fainting Garrett into a small cave. She apologizes profusely as he lays there, but he tells her it's all right, and they realize that they've fallen in love as Garrett is healed by magical forest plants.
Later, the group goes into a dark cave. In the cave lives a giant, rocky ogre who holds the sword Excalibur, and is currently using it as a toothpick. Kayley succeeds in getting the sword, but she and Garrett get stuck in the way and Devon and Cornwall have to save them.
When they arrive in Camelot, Kayley wants Garrett to go with her, but Garrett refuses. After he leaves, Ruber returns and steals the sword from Kayley, takes her captive, and magically fuses it to his hand. Devon and Cornwall, who see what's happening, run to Garrett for help, finally convincing Garrett to go save Kayley. By working together for the first time, Devon and Cornwall are able to fly and breathe fire.
Meanwhile, the bound and gagged Kayley meets her mother and tries to escape. Bladebeak, the minion created from one of Juliana's chickens, releases Kayley and she runs to find Ruber. Garrett finds Kayley and they go to King Arthur's castle.
In the castle, Ruber meets King Arthur and tries to kill him. Kayley and Garrett stop him and trick Ruber into returning Excalibur to its stone. A blue wave of magic emanates from the stone, all over Camelot. It turns the metal creatures (including Bladebeak) back to normal, destroys Ruber and Darla, and cures Arthur's injury. Briefly, the magic grants Devon and Cornwall their wish to be separate, but the two opt to remain connected and they are returned to their original state (it could have also brought Garrett's sight back).
After Ruber dies, King Arthur pulls Excalibur from its stone, Kayley and Garrett get married and become knights of the Round Table. The movie ends with the happy couple riding a horse with a sign saying: "Just Knighted" as Danny and Sawyer holding hands, and Romeo and Juliet kissing.
- Danny, Sawyer, Rjane, Romeo, Juliet, and Darla Dimple guest star in this film.
- The idea that Danny and Sawyer guest star in Pooh's Adventures of Quest for Camelot was based on the Quest for Camelot/Cats Don't Dance Warner Bros. Family Entertainment Double Feature DVD.
- The fact about Darla Dimple teaming up with Sir Ruber is very similar to Nasty Jack teaming up with Cat R. Waul in Pooh's Adventures of An American Tail: Fievel Goes West.
- This is the first film to use NTSC bits from Piglet's Big Movie.
- Also known as Winnie The Pooh and the Quest for Camelot.
- The idea about Romeo and Juliet first time being guest stars was from HunterXColleen