It turns out that Charlie has the "Gift" – a rare ability to open portals into the dimension where monsters lurk, and the explanation for the devastating force of his nightmares. But his gift makes him a danger to himself and others: when he is made to open a portal his power is so great that he inadvertently wakes Barakkas, one of the most powerful and evil of all monsters.

Threatened with "Reduction" (a lobotomy that would remove his imagination) Charlie is saved by the wise Headmaster of the Nightmare Academy, where he is taken to explore his talents – and prepare for the coming showdown with Barakkas…