Pete and Elliott visit Passamaquoddy, where the unseen Elliott's clumsiness causes Pete to be labeled a source of bad luck. Lampie, the lighthouse keeper, stumbles out of a tavern and encounters Pete. Elliott makes himself visible and Lampie, terrified, runs to the townsfolk ("I Saw a Dragon"). Naturally, they shake this off as another drunken rant, when his daughter, Nora, arrives. Afterwards, she leads him back to the lighthouse and puts him to bed. In a seaside cave Pete scolds Elliott for causing trouble. As they make up, Lampie's daughter Nora appears, warning that Pete isn't safe staying in there because of the ongoing tides from the sea. When she realizes he's orphaned and not from the area, she offers him food and shelter at the lighthouse and he accepts.