Tyko and Julius manage to enter the second world, The World of the Red Road where Tyko faces yet another miracle: His friend Julius is not actually a he, but a she - Julia. It’s also time for Tyko to open the sealed letter, which is from his mother, Margareta Flores. In the letter she explains that the dreadful Dancing Devil is actually Tyko’s uncle, Margareta’s brother Count Mazoo. He stole the power from Margareta and sent her to the Square of Two Brothers in the third world where she was forced to get married to the Emperor of the City. Tyko’s father, General Ramm, was imprisoned. To save Tyko from the uncle, Margareta sent Tyko to the silver mines. The only person who can free both Margareta and General Ramm and defeat the Dancing Devil is Tyko.
In order to go to the Square of Two Brothers, Tyko and Julia join a travelling theatre company, the Magical Variety Troupe of Don Ramon. With the help of the three troupe members, Mr. Arti Harakka, Don Ramon and Lillevi, Tyko and Julia now head towards the city by the sea, Son-Li. The troupe members have long waited for Tyko and Julia to arrive in order to help Tyko and his family with their fight against the dreadful Dancing Devil. They have once sworn eternal loyalty to Tyko’s mother and are to help Tyko in his trial to free his family. Along the way Tyko realizes that the magpie, the rat and the toad that helped him in his own world are none other than Mr. Harakka, Don Ramon and Lilllevi, turned into animals when travelling between the different worlds!
Tyko and his entourage quickly learn that the city of Son-Li is terrorized by the evil Lord who has the power to drown the whole city. To get to Margareta, Tyko and his friends must cross a terrifyingly dangerous sea, pass one of the gateways of the Mountain of Nine Gateways and overcome the man-eating Snake-Monkey.