Rainbow Tinseltail and the other students at Sparklegrove School for Unicorns are excited when a brand new unicorn, Sunny Huckleberry, enters the school, but Sunny does not know what his special magical power is, and the thought that he might not have any power at all is making him unhappy; Rainbow (whose power is granting wishes) is eager to help him--even though he does not seem to want her help.

In order to earn their Bravery Patches, Bo and the other unicorns of Sparklegrove Forest have to camp out in the forest for three nights; but the night is full of frightening noises, and when a misunderstanding offends some pixies, the unicorns resolve to face their fears and confront the "monsters" who are stealing the pixies' houses.

Merbaby Flo was born with only one fin, unable to swim--so Bo and the other unicorns set out for the Shiny Sea to find the Golden Fish and ask Goldie to use his magic to help baby Flo.