Fables & Reflections is another collection of various stories. It starts with a small one about a young writer/director who is on the verge of quiting his big production out of a fear of failure. That night, he dreams he is climbing up a mountain (he is scared of heights). He gets to the top and meets Dream. He tells Dream about a dream he had, where he was chased up to his roof by witches and fell, but he knew it was a dream, so he stopped the dream, but he couldn't wake up, so he was stuck in limbo for hours, and ever since he's been scared of falling. Dream offers him a third alternative when you fall (the first two being you wake up or you die) and Todd falls. We see him the next day, up and ready to go, he tells a cast member of his dream, that sometimes when you fall, you fly.

Then we move into four connected stories, "Distant Mirrors." The first is "August." We follow the Roman emperor, Augustus Ceasar as he masquerades as a beggar with a midget and tells his friend of his hopes and dreams. We see Augustus' life, how he was raped by his uncle Ceasar and how he brings Rome to greatness and is now secretly plotting its downfall (because he feels Rome is too bloody a culture). This dream was one in which he met Dream and sought his advice. Dream told him to do as he will as a beggar, that way the gods won't know. Augustus followed Dream's advice and followed his dreams that ruled the world.

Next we have "Thermidor," a tale in which lady Johanna Constantine rescues Orpheus' head from out of Paris during the 1794 French Revolution (she does this at Dream's request). She gets caught and to free herself and Orpheus, Orpheus sings a song and is joined by all the severed heads from the guillotine, thus ending Robespierre's revolution.

Thirdly, we have "Three Septembers and a January," a tale about Joshua Abraham Norton, the first and only Emperor of the United States. We meet him while he is with Despair and she issues a challenge to Dream, from her and Delirium and Desire, that he must keep Norton out of their realms for the rest of his life. Dream accomplishes this by giving Norton the dream of being an emperor and Norton takes to it with gusto, meeting Mark Twain and living in San Francisco. Delirium notes that Norton is not hers, that "his madness keeps him sane." Norton finally dies and Dream wins. And Death declares that Norton was a wise ruler, "the first and last Emperor of the United States of America."

Then we have "Ramadan." A story of the magical city of Baghdad. In it, we meet caliph Haroun Al Rachid, ruler of the finest city ever. The caliph becomes distressed that the city will one day fade, so to save all the magic and wonder he bargains with Dream to take the city into dreams and the caliph asks in return to live forever. Dream agrees and we see the caliph in an ordinary city. Unwittingly, he bumps into Dream who has the city in a bottle. The caliph looks into the bottle and then wanders off filled with wonder. The next panel shows us a young boy in contemporary war-torn Baghdad. He has been listening to this tale from a ragged storyteller who shoos him away. The boy wanders through the rubbles his eyes alight with the magic of stories and dreams.

We then come to another collection of stories called "Convergence." We see an old story in "The Hunt," one of werewolves in Eastern Europe, told by an old man to his granddaughter. The hero of the tale chases after and finds a princess, but in the end leaves his dream untouched to return to the woods he knows.

In "Soft Places," we follow Marco Polo as he gets lost in the desert and wanders in a soft place where the dreaming and the waking world ebb and flow within each other. So, Marco gets to meet Gilbert, Fiddler's Green. But then he wakes up, recalling his mother's tale that the Sandman throws sand into your eyes that sends you off to Dreamland, and "that's the sand you find in your eyes when you wake up."

The final tale in "Convergence," is "The Parliament of Rooks." We see Daniel (the baby from the Doll's House) as he wanders around in the Dreaming. He meets Cain and Abel and Eve and Matthew. They invite him in and tell him stories. Eve tells of Adam's three wives - Lilith, the unnamed one and Eve. Abel tells the story of a young Death and Dream meeting Cain and Abel and that they lived happily ever after. Cain is disgusted by this trite tale and in the banter that follows says, "They didn't even look remotely human. None of us did, back then." To which Abel replies, "Oh, this wasn't on earth." Finally, Cain tells the story of a parliament of rooks, and how rooks gather in a field, one surrounded by all the rest. And the one caws to the silent group for hours on end, and at some mysterious point the group either all flies away or pecks the lone rook to death. As Daniel leaves (he's waking up), Abel reveals the secret, that the lone rook is telling a story and it finds out in the end if the others like it or not. Cain then murders Abel and says, "I keep telling you, it's the Mystery that endures, not the explanation... Nobody really cares who-done-it. They'll peck you to pieces if you tell them... [but] a good Mystery can last forever."

To end this collection of stores, we have the "Song of Orpheus." It is told straight, except with the Endless substituting themselves in the Greek pantheon where appropriate. We have Orpheus marrying Eurydice, and then she dies. He fights with Dream over how to deal with her death (Dream advises that he move on: in anger they renounce each other). Orpheus goes to get her (visiting Destruction and Death), makes the Furies cry, turns around, and loses Eurydice forever. He then gets attacked by the Furies and has his immortal head severed from his body. Dream, his father, comes and lets Orpheus know that he has arranged for him to be cared for, and that he has come to say goodbye. He then walks away, and unlike Orpheus, he never looks back.