When ten-year-old Andy Ritter von Krumm finds a magic pencil he discovers a world he didn't believe existed - the invisible, unworldly realm of good spirits and evil demons.
He also learns there are evil demons in human form in the visible, worldly realm - and none worse than his own aunt, the Countess Kunnikunde Ritter von Krumm. She is hell bent on destroying young Andy and his parents, Johann and Anna, and anyone else who gets in her way.
Kunnikunde's once renowned pencil company starts to go downhill due to her uncontrollable greed and dishonest business practices.
The company finally falls apart when its manager Johann leaves, who is Kunnikunde's brother-in-law and Andy's father. He resigns because she ignores his objections to her corrupt methods. He goes off and starts his own pencil company, which becomes very successful, while Kunnikunde's fails miserably.
Consumed with jealousy and hate, Kunnikunde seeks terrible revenge on Johann, Anna and Andy.
With the magic pencil's help, Andy and his faithful dog, Sassy, throw themselves into the battle to defeat his evil aunt and her nasty cronies.
The magic pencil takes Andy on a wild adventure of fun and excitement, filled with weird and wonderful characters. But Andy also encounters various dastardly and diabolical enemies, including Lucifer, the Devil himself.
The good spirit living in the magic pencil is the opposite of the Devil's evil spirit, and it possesses the powers to match Lucifer's demonic supernatural forces. Over time the magic pencil gives Andy awesome powers of his own, both mental and physical, which Andy uses to constantly thwart his evil aunt Kunnikunde's efforts to destroy him and his parents.
Kunnikunde also possesses stupendous, terrifying powers, courtesy of the Devil, who recruits her to help him make all humans as evil and greedy as she is.