"Uncle Tom's Dragon" is a charming children's story about Elle, a young girl with bright red hair who loves visiting her Uncle Tom. When Elle hurts her knee while playing, Uncle Tom reveals his big secret: he has a friendly green dragon living in his basement that only he can see. Uncle Tom explains how he found the baby dragon in a cave as a boy, and how the dragon now watches over their family.

The dragon has special magic that helps people feel brave when they're scared or hurt. Elle learns to imagine the dragon when she needs courage and even leaves cookies by the basement door that mysteriously disappear overnight. She shares the secret with her sister, who is no longer afraid of thunderstorms. The story concludes with a poem about how "friends are always there, even when they can't be seen," suggesting the dragon represents the power of imagination and the comfort of having someone watching over you.