After his mother leaves, Jeremy gets the dragon some more chicken livers, and after checking the book, he provides her with a soup bowl full of milk. When she drinks this, she falls asleep on his pillow. This gives Jeremy a brief reprieve to help his mother with yard work, but he worries about the potential trouble that the dragon could cause while he is outside. Upon his return, Jeremy finds her sleeping in his sock drawer and starts brainstorming likely names for her. He suggests several names to the dragon, such as “Fafnir,” “Smaug,” and “Ouroboros,” none of which she likes. He finally suggests “Tiamat,” which gets a positive response.

Spess arrives soon after, but when he does not notice Tiamat, this confirms that she is invisible to everyone but Jeremy himself. The boys discuss Mary Lou and their plans for the art contest and then go out to finish the yard work. Afterward, Jeremy asks Spess for help in finding the magic shop again.

Jeremy and Spess spend several hours searching for Mr. Elives’ shop, only to find that it has vanished. Frustrated and exhausted, they return home. Jeremy tries to use the phone book and call information, but there is no record of the store.