The Nexo Knights return to the Knights Academy partly to get re-educated under the headmaster Sir Brickland and partly because Jestro and the Book of Monsters are after another spellbook that is located there.
The Nexo Knights attend the Gold is Good Ball hosted by Lance's parents in the extremely wealthy town of Auremville.
The Book of Monsters plans to consume a limited edition copy of a Ned Knightley comic book, which will guarded by the Nexo Knights until it is won at a costume contest at Knight-A-Con (this show's parody of the San Diego Comic Con).
On King Halbert's birthday, Jorah Tightwad decides to prove that the Tighty Knighties are better than the Nexo Knights at King Halbert's birthday tournament, using the Book of Envy as proof that they encountered Jestro.
The famed Knighton Chef Gobbleton Rambley has created a chili recipe so spicy, the Book of Monsters gains the idea to weaponize it.
The Nexo Knights send Clay on vacation to get some free time, unaware that Jestro and the Book of Monsters are on the trail of another evil spell book that is near where Clay is staying on his vacation.
Meanwhile, the Book of Monsters drags Jestro to Snottingham - one of the coldest places in Knighton where everyone coughs, has a runny nose and is generally under-the-weather.
Jestro and his monsters are in attack formation moving to pillage the town of Funnyton. But when they arrive, ready to tear into the place, they see that nobody's in town.
We finally REVEAL that Jestro has given the Book of Betrayal to...Clay. He tells Clay what it is and how Mike Knight used it. And it seems that the Book of Monsters believed it to be the final ingredient in some 'Master Plan.
Recapping from the previous episode, Clay hands The Book of Betrayal not because he was corrupted, but to exchange it for Jestro's freedom.