That night a man named Matthew McCreep learns from the merchant that the same flute he had been looking for is at the castle. He heads over to the castle and steals the flute from Peewit. The king sends Peewit and the young knight Johan out to catch McCreep, who uses the flute to rob people of their money. However, McCreep uses the flute to stop them. Johan and Peewit then go to the house of Homnibus the wizard. Using a spell called Hypnokenesis, the wizard sends Johan and Peewit to Smurfland where the magic flute was built.