When Grizzle invents a "dream scheme machine," not even the Care Bears nocturnal slumberings are safe from his evil designs. At first, the device is set only to low power, but when Grizzle cranks it all the way, the Care Bears find themselves trapped in a giant nightmare world. With help from the others, Bedtime manages to resist the machine's effects. He's always dreamed of being a brave knight, but must summon real courage to try to foil Grizzle's plot.