After his minions repeatedly fail to kill Snow White, Lord Maliss seizes her in his dragon form and brings her to his castle. The Dwarfelles go after him, as does the Shadow Man in secret, and they all manage to get into his castle and start looking for Snow White.
When the unconscious Snow White awakens, she finds herself in the throne room with the Prince standing over her. Telling her that they need to hide, he brings her higher up in the castle, the whole while clearly not behaving like himself. He eventually brings her before a pedestal bearing her name, and then he morphs into Maliss. He brought her here intending to turn her into a statue on the pedestal by throwing a cloak over her that turns whatever it is draped over into stone. The Shadow Man emerges and tries to help Snow White, but Maliss overpowers and kills him. The Dwarfelles then come to her aid, but Maliss gets the better of them, too, seemingly turning them all to stone with the cloak. However, we soon see Thunderella hiding behind a nearby pillar.
As Maliss immobilizes Snow White on the pedestal and readies the cloak, Thunderella finally gets her lightning powers working, and she zaps Maliss. As he is distracted by the attack, Snow White snatches the cloak from him and brings it down over his head. A lightning storm starts up, and as Maliss is hit with several lightning bolts, he is forcibly transformed into his dragon form, then his head returns to human form, and then he finally becomes frozen in stone.
The other Dwarfelles return to normal, and Snow White weeps over the Shadow Man’s body just as Mother Nature arrives. The Shadow Man then comes back to life and changes form, revealing that he is actually the Prince. As they hug and kiss, the Prince explains to Snow White that Maliss had turned him into the Shadow Man, but he swore to himself that, despite his altered state, he would not stop trying to protect her. Snow White thanks the Dwarfelles for their help and invites them to her wedding, and Mother Nature decides to not strip them of their powers, feeling that they have proven themselves. She also takes in Scowl and Batso as her new apprentices. Snow White and the Prince kiss one more time to end the movie.
Thanks Tornado Dragon!