Sebastian and Sara mistakenly descend into a mystical land where elves, mermaids, gnomes and other mythological creatures live. The two discover they have stumbled into an ancient battle between these fair folk and evil creatures called the Kylo. Their guide on this journey is Capri, an elf lord who is on a quest to find his lost tribe. The Kylo chase the children and Capri in his flying galleon north into the Arctic Circle where they find the most unlikely ally. During the final battle the children learn about sacrifice, love and ultimately forgiveness.
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