Caractacus' story
Baron Bomburst, ruler of the land of Vulgaria, attempts to steal Chitty while it is stranded by high tide. The family escapes thanks to Chitty's sudden transformation into a boat, and Caractacus returns Truly to Scrumptious manor; she finds she has fallen in love with Caractacus. The Baron sends two spies to get the car. During one attempt, the spies accidentally kidnap Truly's father, Lord Scrumptious, and his valet; they take advantage of the blunder by disguising themselves as English gentlemen, hoping to kidnap Caractacus. Arriving at Caractacus' home, they mistake Grandpa Potts for him. The spies take Grandpa's outhouse with him inside using Bomburst's airship and the Vulgarian party flies away. When Caractacus, Truly, and the children follow them, Chitty sprouts wings and propellers, and Caractacus flies the car to Vulgaria.
Grandpa is taken to Bomburst's castle, where the Baron has imprisoned other elderly inventors, and ordered to make another floating car. When the Potts party arrives in the neighbouring village, they learn that children have been outlawed in Vulgaria as Bomburst's wife, the Baroness, abhors them. The local Toymaker hides the group in his shop from Bomburst's soldiers and Child Catcher. The Potts family and Truly disguise themselves as jack-in-the-boxes. Chitty is taken to the castle. While Caractacus and the Toymaker survey the castle, and Truly searches for food, the Child Catcher returns and kidnaps Jeremy and Jemima. The Toymaker takes Caractacus and Truly to a grotto beneath the castle where the townspeople have been hiding their children; there, Caractacus concocts a scheme to free Vulgaria from the tyranny of the Bombursts.
The next day during Bomburst's birthday, the Toymaker sneaks Caractacus and Truly into the castle disguised as lifelike dolls that sing and dance. At Caractacus' signal, the Vulgarian children swarm the banquet hall, overcome Bomburst's guests, and capture the Baron, Baroness, and Child Catcher. The Vulgarian townsfolk storm the castle, while Caractacus, Truly, and the Toymaker free Jemima and Jeremy. The group joins the fight against Bomburst's soldiers; Chitty comes to their aid, and Grandpa is rescued. With the battle won, the Potts party bids farewell to the Vulgarians and fly home to England.
