Bulgy's Dream is a read and colour magazine story.
Thomas and Percy see Bulgy smiling in his sleep: Bulgy is dreaming about being useful again and living in a world without trains. Thomas, Percy and Bertie think that he is up to something, and the Fat Controller agrees that there is no need for Bulgy to be restored. When Bulgy wakes up, he is cross to find there are still trains.
- Bulgy is described as Diesel's friend in this story.