This is why I still have nightmares.
This terrifying film (a musical) was considered appropriate for children in the 1970s.
A boy leaves on a magical journey to an island. The mayor of the island, Pufnstuf, allegedly a dragon, looking more like a newt with conjunctivitis to me, and a magic talking flute are targeted by a witch (Billie Halliday, who was considered 'a bit of alright' at the time).
The flute is recovered at an 'interesting' witches convention, with the witches having a gay old time. The boy dresses in drag then as a 'fairy' to recover the flute.
Not suitable for children.