In search of more unicorns like herself, Moonlight ventures into the Enchanted Forest, ready for an adventure. Instead of finding unicorns, she discovers a whole new world of fairies, magic, and all kinds of other creatures.

At first, the fairies are afraid of Moonlight, but with her kind heart and willingness to help them, they soon warm up to her. It turns out that the fairy flowers that give them their magic is in jeopardy because of a fire breathing dragon that burns them as he flies by.

Moonlight offers to find this dragon along with the help of Aleena, a spunky purple-haired fairy not afraid of danger. They set out to find the Mystic Cave which is in the deepest, darkest realms of the forest. Together, they learn how to face their fears, and above all else, the true meaning of friendship.