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"Merlin's Shop of Mystical Wonders" is a movie within a TV movie within a made-for-video movie. A boy is watching TV when a power outage forces him to talk to his grandpa for entertainment. His grandpa, a former screenwriter, re-tells an old script about Merlin's Shop of Mystical Wonders. In it, Merlin sets up an enchanting store in a modern-day strip mall, accompanied by his gleeful wife and gnomes, snakes, dragons, etc. From this framing device, we then see two stories about people's encounters with items from the shop. The first sequence involves a pompous, cranky newspaper critic who begins casting spells using Merlin's spell book. The second story, The Devil's Gift, is about an evil monkey doll (you know, the wicked grin and the cymbals?) who kills every time his hands clap.