Unlike in the first two volumes of Fables, there is no single story arc but instead four tales of different lengths that help at color and depth to the Fables world.
In "Bag o' Bones" Jack the Giant Killer is taken back to his early years as a Fabled exile in America. He has allied with the South in the Civil War looking for fame, dames, and fortune...playing the hero game. Once fortunes turn against the South, Jack abandons the sinking ship of Confederacy and winds up having adventures involving the Devil, Death, and a beautiful cursed Southern Belle.
In "a Two-Part Caper" a reporter contacts Bigby to let him know that he knows the secrets. He has discovered the colony of immortals and is convinced that they are vampires. Bigby, with the help of Sleeping Beauty, Bluebeard, the Frog Prince, Prince Charming and Boy Blue, makes a late night raid to ensure their secret is kept.
In "Storybook Love", the longest story in the collection, Bigby and Snow become targets for death and are removed from Fabletown, Prince Charming squares off against Bluebeard, a villain returns, unforeseen repercussions arise, and Charming decides to look into running for mayor.
In the last story Bigby tells The Frog Prince of "Barleycorn Bride" wherein John Barleycorn must help the rest of the refugee Lilliputians find brides their own size.
The tales in this volume help fill gaps in the Fables history while yet still moving the story along from the previous two books. Reading volumes one and two is definitely critical for enjoying #3 to its fullest where as the links and continuity are delivered subtle and smooth.
Possibly my favorite of the series thus far.