The Kingdom of Dreamland is magical realm in The World ruled by King Zög with Queen Oona at his side. It is home to Princess Bean, her "personal demon" Luci and her exiled elf companion, Elfo. Dreamland fell after the return of Queen Dagmar who was in league with the Maruvians.
Reign of Zög
Queen Dagmar was turned to stone after ingesting poison meant for King Zög. The king then spent the next fifteen years trying to free her from her stone prison. At some point, Dreamland forced the kingdom of Dankmire to build a canal and then fought a 100 year war over the ownership of the canal. The war ended when Zög married Oona of Dankmire and would share the canal in a new alliance.
The Present Day
Princess Tiabeanie "Bean", destined to be married to Prince Guysbert of Bentwood, discovers a demon from Hell named Luci whilst looking through her gifts. Unbeknownst to Bean, Luci was sent by two dark mages hoping to turn Bean to the darkness. He is a fun-loving troublemaker who sympathizes with Bean's predicament: she is miserable as her marriage would be joyless and serves only her father, King Zög's ambitions to make Dreamland more powerful.
Meanwhile, Elfo, an elf who is disillusioned with his overly happy life and decides to leave the realm of Elfwood in search of misery. Elfo arrives just in time to witness Bean's failed marriage to Guysbert who manages to impale himself on a sword. Bean, Elfo and Luci escape while Prince Merkimer - next in line to marry Bean - chases after her with the Knights of the Zog Table. The trio get directions by a fairy to see the Wishmaster, but he turns out to be the Washmaster instead. With everyone surrounding them, Bean takes Elfo and Luci and jump from a high cliff but are "rescued" by Merkimer who takes them back to Dreamland. Elfo is taken in by Sorcerio who wants to use his blood to aid Zög's pursuit of the Elixir of Life. Bean discovers her father and Sorcerio's plan to drain Elfo of his blood so they use pig's blood to fool them.
Bean plans a bachelor party and the entire crew sets sail for Mermaid Island in the hopes that Merkimer will be killed by the Mermaids. He is instead taken in by Walruses who save them from what are mistakenly thought to be murderous Borcs which turn out to be the allied Bozaks. Bean loses hope of ridding herself of Merkimer, until he discovers the "elf blood" - which is mostly pig's blood. Elfo convinces Merkimer to drink it and it transforms him into a pig. Now fed up, he renounces the marriage and Zøg finally agrees with his daughter. This upsets the king of Bentwood and he and Zög settle things in a King fight with Bean, Elfo and Luci happily watching.
Queen Dagmar was brought back to life by Bean who used the Elixir of Life, and thus the kingdom celebrated her return. However King Zög began to grow unhappy and revealed more about himself to Luci who uses the crystal ball that Tess returned to witness events from the past. Luci shows Zog what really happened in the tower the night Dagmar was turned to stone. A brief glimpse of Bender Rodríguez, Philip J. Fry and Professor Farnsworth is witnessed in the projection of past events.
Meanwhile Queen Oona flees after making a deal of some kind with Odval while Zøg keeps Derek "safe" in a tower, while residents of the kingdom mysteriously being turning to stone. Dagmar (who is working for Empire of Maru) takes Bean to a secret library while Luci reveals to Zøg that Dagmar tried to poison him all those years ago. She unleashes an Infernal Amplifier spell from the library upon all of Dreamland, turning everyone to stone except Zøg. Luci is captured by someone while Dagmar and Bean escape on a boat with creatures. Dreamland falls, and the apparently dead Elfo washes up on the shores of Mermaid Island...
Dreamland was an absolute monarchy ruled by the tyrant King Zög and his wife Queen Oona, as well as the King's Council, made up of hands-to-the-king and royal advisors to the King; such as Odval, who was appointed as regent when the King fell ill. The kingdom was briefly took over by the Land Vikings, led by Sven, who proclaimed himself as king of Dreamland.