Thanks to Alarda for the pic and story outline!

This episode starts with Lady LovelyLocks getting up and meeting Prince in the garden. He tells her that he has found a tunnel and that he will find out where it leads. Well, the atmosphere doesn’t remain like this for long. The friends of the Lady meet them, and Maiden CurlyCrown tells them that another girl in the castle has overheard the Comb Gnomes.

Prince insists that this must be important, for the Comb Gnomes are known to the spies and messengers of the Duchess, but Lady LovelyLocks refuses to discuss such matters before breakfast, because the morning is too beautiful for such worries. So the matter will have to wait until after breakfast and they go to the pond instead.

In the meantime, Duchess RavenWaves sits again in front of her mirror and tries to find out more about Prince StrongHeart. But the mirror refuses, telling her that the secret is protected by a spell. So she wants to take a look into the Magical Forest again.

And there she sees Matti and Tatzel again, this time getting ready to visit Lady LovelyLocks to give the chain and pendant with the blue stone back to her and Prince. Not wanting to know what happens further, she sends HairBall off to catch them when they arrive in the Land of Light, and bring them to her.

What she doesn't know then, is that Matti and Tatzel loose the chain again. If falls into the river not long after they've heard someone crying somewhere near them - in the middle of the river!
But instead of being lost forever, the chain with it's precious pendant is found by the "Neebelmoog" (I don't know how to translate this name. Let's just say this much: "Nebel" is the German word for mist. But I don't wanted to call him Mistymoog or something! Sounds aweful...)

He gives the chain to his youngest daughter Moma (not a name with an inner meaning this time), because she is very sad, having no one to play with, having green hair and only being able to come out of the water if her father wraps her in mist. She likes the chain, because the gold glitters so beautifully - and because her father tells her that two kids wanted to give it to Lady LovelyLocks, which Moma has seen and admires.

In the meantime said two kids - Matti and Tatzel - have been caught and brought to the Duchess RavenWaves by HairBall. Because they refuse to tell her were the chain and the pendant are, she sends them into the dungeon without having anything for supper... She goes to bother her mirror to show her where the chain and pendant are, but it refuses again. Because she wouldn't be able to see anything, she smashes it in a fit of rage.

Meanwhile, ShiningGlory has seen what has happened to the two friends of the Lady and he tells her about it. And about what the stars have told him: that a creature who isn't out of flesh and blood will help them to solve the riddle. And that they keep mentioning Prince, over and over, and that he's come to the conclusion that Prince is more than an ordinary dog...

Having heard about Matti and Tatzel, Prince raced to his tunnel and has now, after hours of digging, reached a wall, behind which he can hear Matti and Tatzel. He overhears HairBall giving the two some soup, and how they get caught in the act of trying to break out - by the Duchess herself. Now they get locked in the whine cellar.

Having overheard that, Prince runs back to the Lady - who he finds in ShiningGlory’s tower, looking with him into his crystal ball and watching a curious dancing mist, in which it sparkles and glitters.

He tells her about what he has found out, and because the walls of RavenWaves Castle are protected by magic, they've got to call the Pixietails for help. They meet them in the garden. And they tell her that they've met Moma, the jungest daughter of the Nebelmoog, which has cost them time - though they where in the garden before the Lady and ShiningGlory.

That casual mention solves the riddle of the lost chain. Moma has to be the creature of which the stars had been speaking. And while the Lady and ShiningGlory go to the river to meet Moma, and ask her for the chain and pendant, Prince and the Pixietails enter the castle of RavenWaves through the tunnel (the Pixietails can't enter it directly, because of the magical protection - it blocks them out, but under the ground that barrier doesn't exist, so Prince must show them the way.)

They free Matti and Tatzel - for whom Prince has to go upstairs and get the key for the cellar from under the Duchess’ pillow. Unseen they can leave the castle of the Duchess and return to their own where they meet Lady LovelyLocks and ShiningGlory. They got the chain and pendant back - Moma gave it back to them, and therefore they will visit them at the next rainy or misty day and they will all play together.

This episode ends with everybody being happy that the chain and pendant are back.