The next storyline is the Kindly Ones. In it we see the death of this incarnation of Dream. The story starts with the Kindly Ones, the three women who weave the tale we are experiencing. We see Lyta Hall who is possessed with caring for Daniel and finally one night Daniel is kidnapped while being babysat by Rose Walker (from Doll's House). Lyta goes on a quest through the real and imaginary realms. She is after Dream (she remembers his promise to take her child) and in search of the Kindly Ones for revenge. Her friend calls the police but instead we get two tricksters in disguise (Loki and Puck). When Lyta finds the Furies, they let her know that Dream has spilled family blood so they can use her to get to him. Loki and Puck are burning off Daniel's mortality and the Furies are on the move. These changes have repercussions. Queen Titania sends for Nuala to keep her safe (Dream wishes her well and offers her a boon). And Dream himself reacts by recreating the Corinthian and sending him and Matthew off in search of Daniel. They do find Daniel, and the Corinthian battles and defeats Loki. Puck scampers away (and Matthew is magically drawn back to the Dreaming, which is overrun by ravens who are gathering for the slaughter as the Kindly Ones start destroying the Dreaming and its inhabitants). Dream attempts to end this by killing Lyta Hall, but she has been magically protected by Thessaly (now going by Larissa).

So, Dream returns to the Dreaming where he assumes he will be able to weather this affair with little irreparable damage. But Nuala has heard that Dream is in danger so she uses her boon to summon him to Fairie, and he honors his word and comes. He tells her what is happening and how his coming has caused great trouble and she replies, "You want them to punish you, don't you?" He returns but the Kindly Ones have taken over the Dreaming and threaten to destroy it all. He decides to confront them instead of losing all, so he and Matthew fly to meet them. We learn that Matthew is not the first raven, Lucien was, and was the one who became human. Death shows up and calls off the Kindly Ones and she and Dream talk. She offers that he could have left, he replies that he could not, and she agrees. A moment later, they touch hands and Dream dies, but Death comes from life and the story ends with Daniel transforming into the new incarnation of Dream in white.