Meeting the real Molly again, Sir Timothy is overcome with guilt and tells her his life story in the hope that she can prevent her Tim from becoming him. Tim, meanwhile, manages to see through all of Barbatos' attempts to trick him, and eventually brings the fairy tale world crashing down around their ears. Sir Timothy dies protecting Molly from the destruction unleashed by Tim, and the two children are reunited. As they return home, they leave Barbatos trapped in the ruins of the world he created, although he does briefly escape again.