The book begins with Mundus, Baga, and Fender rescuing Rundy Fumbler, the Gnome scientist and inventor, from the human Third Realm who has been stone-gnomed. Meanwhile the goblin leader Farnuk Tam, along with his deputy Wenkle Frat and chief of the elite goblin squadron Peasly Greel, has devised an ‘Ignacious Plan’ to stop the gnomes once and for all. Farnuk Tam’s ‘Ignacious Plan’ is to get inside the Third Realm in order to steal a bunch of human eyes.
However, the goblins first have to get hold of the secret password to cross-over between realms – known as the HOG – the ‘Holy Oath of a Gnome’. The first part of the ‘Ignacious Plan’ entails kidnapping a gnome and obtaining the HOG through hypnosis. The early chapters describe the antics of the goblins as they kidnap, interrogate, and finally hypnotise one of the gnomes in order to obtain the holy oath. They next organize a raiding party to enter into the human Third Realm in order to create havoc and chaos; and to obtain as many human eyes as possible.
The gnomes hear of this transgression into the human world and send their own crack squad of gnomes to retrieve the goblins. In the ensuing confrontation the gnome Baga Gheet gets caught by the police and is stone-gnomed in police custody. The next step of the goblin plan, after obtaining the human eyes from the Third Realm, is to get inside Grundy City, the capital of Grundusland. Farnuk Tam plans to turn Mundus Grundy and his fellow gnomes to stone before taking over Grundusland for himself. Yet Farnuk Tam cannot do this alone: his ‘Ignacious Plan’ involves the help of the mischievous imp Bodel Nak and the inscrutable djinns Kluth and Konji.
Mundus Grundy soon becomes aware of the ‘Ignacious Plan’ thanks to his spy – the sprite known as Spritely Neem. Mundus Grundy’s first priority is to protect the gnome inhabitants of Grundusland, such as the likes of Churly Bender, Welma Wurdy, Marty Furly, Rundy Fumbler, Mooley Myrkle, and the rest of the lively characters of Grundy City. As the King of Grundusland, Mundus Grundy concocts his own plans to thwart Farnuk Tam and his spewd of goblins who live in Tam Tower. Meanwhile the female gnome Serly Frundy goes into battle against a battalion of cats in the human world in order to retrieve Baga from police custody. All this action takes place amidst the backdrop of life in Grundy City, where gnomes visit Churly’s Teahouse on Knocker Lane; Marty Furly’s Fashion House on Nobblers Avenue; and DIY and tool shops on Needit Street.
Mundus accepts Farnuk’s invitation to come to Grundy City to apologize for past rivalry, yet plans to trap Farnuk and his goblins within the palace. The gnome plan succeeds, to a degree, yet Farnuk escapes Grundusland and heads for the human world. The rest of the goblins return, after gnome-hypnosis, to Tam Tower; where the imp Bodel Nak has assumed control. The newly hypnotised goblins create a Priesthood of Goblinism and engage in goblin civil war. Meanwhile Farnuk Tam has befriended a young boy in the Third Realm with plans for taking over the human world in global rule. Finally, Mundus Grundy receives orders from the Elvin Lords of the First Realm to prepare to enter human territory and solve the Farnuk problem once and for all…