Warning: Like most articles regarding books in the Artemis Fowl series, there are many spoilers included in this summary. Read with caution.
The story occurs shortly after the fairy people's initial contact with Artemis Fowl, and before The Arctic Incident. At this time, Artemis's mother had been returned to health by LEP Captain Holly Short, but his father was still missing, presumed dead, in Northern Russia.
It starts in New York as Mulch Diggums, the kleptomaniac dwarf, is tunnelling towards a basement which contains the tiara of Lady Fei Fei. He breaks into the basement without a hitch, but is suspicious and more than a little confused as to why the tiara is out in the open with hardly any security—there are no cameras or safety-deposit boxes.
He inspects the tiara, and finds that it is a fake. Insert dramatic music.
"Artemis Fowl," Mulch whispers.
And instantly the information from the helmet he is wearing is sent to Foaly in the Operations Booth. Artemis turns off all of the gadgets on the helmet but unfortunately cannot remove the tracking device which is sprayed on in a layer of the helmet. Foaly then tracks them back to Artemis's house. Commander Root is informed and calls Holly Short away from her vacation at the Cominetto Spa to go after them. Holly is only to happy to oblige; she loves Foaly to death but a fairy can only have so many mudbaths.
The story then switches to Artemis's private jet where Artemis is explaining to Mulch that he was tricked (by none other than moi) and the tiara had already been stolen by the 'six dwarfs'. Artemis negotiates a deal with Mulch to get the tiara so he can use one of the diamonds for a new laser. As a reward, the rest of the tiara could be Mulch's to keep, being useless for Artemis's laser. Mulch then becomes the 'Seventh Dwarf', hence the title of the story.
Artemis, Butler and Mulch then go to Circus Maximus to watch the 'six dwarfs' perform. As the dwarfs perform, Mulch sneaks into their tent and steals the tiara. Unfortunately, just as he is leaving, Holly appears. As she arrests Mulch, the other dwarfs appear (the other six dwarves), who then attack Holly. Unfortunately—and inevitably, for dramatic effect---she is outnumbered.
Just as Mulch tries to help her, Artemis steps in, pretending to represent a German stonemason. He betrays Mulch and tries to persuade the dwarves to let him have Mulch, and Holly to dispose of them.
The dwarves catch on to Artemis's plan, surprisingly, and go to attack him.
So then it's time for Plan B.
As Artemis utters those words, Butler lifts the tent from the ground, causing chaos all around. Holly then sets off a stun grenade, knocking out the six dwarves, just as Butler grabs Mulch and Artemis and drags them to safety. Artemis gives Mulch a check for his part of the tiara and Mulch disappears underground in a flurry of dirt.
Just as Artemis goes to leave, Holly appears from the remains of the tent and stops Artemis from leaving. By gunpoint, of course. He eventually hands over Mulch's stolen LEP helmet and tiara to Holly. She leaves satisfied, believing she has the real copy.
The fairies wouldn't realize until much, much later that it was a fake, switched discreetly by Artemis.
The boy genius then returns home, along with his bodyguard. And—in a heartwarming ending contrary from the rest of the tale's deceit—instead of using the stone for a new laser beam, he turns it into a necklace for his mother. His mother, not realizing that this is stolen property, is overjoyed at the gift. Because the blue diamond is the same colour as Artemis's father's eyes.
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Artemis Fowl • The Arctic Incident • The Eternity Code • The Opal Deception • The Lost Colony • The Time Paradox • The Atlantis Complex • The Last Guardian