Normal boy Mateo realizes he's the defender of dreams against Nightmare King. He faces creatures from dreams crossing into reality, questioning what's real.
The dream world has changed, and with it, Mateo's job. Now acting as "dream consultant" Mateo is bored beyond comprehension. And with the appearance of a new hero who calls himself "Dreamsmasher" there isn't much for him to do. But when a familiar nightmare named SNEAK shows up asking for help, Mateo uncovers a mystery that will lead to an epic season ahead.
While spying on Dreamsmasher, Mateo takes Z-Blob for granted, causing Z-Blob to refuse to go back to the waking world. Now irked and on his own, Mateo tries to find a school club to join to prove he doesn't need his friend. Meanwhile, Z-Blob goes on a pranking spree when he joins Sneak and Zian's mischief-making crew. Unfortunately for them, mischief is exactly what Dreamsmasher seeks to destroy.
As dream consultants for the Bright Bureau, the gang hungers for action as Dreamsmasher takes care of every problem. An off-road race in the dream world gets everyone excited for a little fun. While racing, Mateo discovers Dreamsmasher doing something mysterious. Now it's a race to the finish line as Mateo and Z-Blob are chased by Dreamsmasher's minions, the Meanie Screenies.
Izzie, still smarting from letting Dreamsmasher down, suggests that he run for "dream keeper," the same title that was once used by Lunia. But Mateo, worried that Dreamsmasher will get even more power, decides to run against him, along with a ton of other dream creatures! All is fair in dreams and politics, when the election unveils a secret that will change Izzie and the dream chasers forever!
After learning that Dreamsmasher is none other than Claudius, Izzie is filled with self-doubt, having championing the so-called "hero" for so long. But, working together, the dream chasers come up with a way to make Claudius an unaware dreamer yet again, and hopefully rid the dream world of him once and for all.
With our two teams separated in different dream frequencies, they must roam a strange version of the Deserts of Duralumina in hopes of finding a way out. But while they sojourn across a dangerous new landscape, they discover another person trapped along with them: the person that they've been looking for forever - Lunia!
After regaining her memories of who she once was, Mrs. C tells the dream chasers the story of her humble beginnings. As a young girl who cared for others, she was picked to be the successor to the former dream keeper. During her training, she is told of three rules that she must abide by, or it will lead to worlds of trouble!
After learning that Mrs. C is, in fact, Lunia, the team is on the hunt for Lunia's hourglass, in hopes that it will give Lunia her former dream keeper powers. The team splits up with Mateo and Izzie trying their luck in the waking world, where their school has been completely taken over by Happy App!
The team find out that the "Sun" in the dream world is nothing more than a shell holding a myriad of secrets, and maybe, just maybe, Lunia's hourglass. There, they discover a "Sorting facility" that is cataloguing all the dream creatures down below. After being discovered, the dream chasers need to keep themselves from being unboxed while finding Lunia's hourglass and save the day!
Mateo is saved by Z-Blob who has returned to unbox him from Dreamsmasher's prison. The two dream chasers unbox the rest of their team and wreak havoc in the GLOWING ORB in order to try and retrieve Lunia's hourglass and save the dream world from harm. But not everything is as it appears, as Mateo's plan seems to go more smoothly than he had imagined.
