Barbie is at the premiere of her latest movie when her co-star and rival, Raquelle, steps on her dress, ripping it. Her stylists, Carrie and Taylor, who secretly are fairies, use magic to mend it. Crystal, another fairy, greets Carrie and Taylor and goes back to Gloss Angeles, taking one final picture of Ken.
Back in Gloss Angeles, Crystal shows Princess Graciella the pictures she took at the premiere. She gives the Princess a love potion, which, due to the effects, turns her eyes from blue to purple. Crystal then shows the Princess the picture of Ken she took, and Graciella falls in love with him on the spot.
The next day at Wally’s restaurant, Barbie confronts Raquelle about the dress-stepping incident. Princess Graciella, Crystal, and two assistant fairies show up and kidnap Ken. Carrie and Taylor sprout their wings and attempt to stop the Princess from taking Ken, but the portal to Gloss Angeles closes before they can enter it. The stylists attempt to dissuade Raquelle and Barbie of the fact that they just saw fairies, but finally admit their existence. Meanwhile in Gloss Angeles, Ken and the Princess arrive in the royal palace, where they meet Zane, Graciella’s boyfriend. Zane is outraged at Graciella's new love interest challenges Ken to three duels.
Barbie, Raquelle and the fairies go to a clothing store, where they enter the Flyway (a fairy method of transport), which leads them to the top of the Eiffel Tower in Paris. The fairies reveal that Lilianna Roxelle, a fashion critic, is the oldest and wisest fairy living on Earth, meaning that though she may look in her early 30's, she may be 130-years-old. After they arrive at Lilianna’s house, she informs them that Princess Graciella is under a love potion spell.
Lilliana gives Barbie a potion that will turn Princess Graciella back to normal if she puts it above that it will rain upon her . Then Barbie, Raquelle, Taylor and Carrie aboard magical pegasi to Gloss Angeles, where they cross the Palace guard's swirlnadoes (tornadoes). They disguise as cooks to try to reveal princess Graciella about Crystal's love potion, but to no avail. However, Crystal reveals Taylor and Carrie by recognizing Taylor's shoes, and the princess locks the four in furyspheres. Barbie and Raquelle talk and finally figure out their misunderstanding. They reconcile their differences and become friends. Their forgiveness and friendship transforms the cages in real wings, and they now realize that forgiveness lets you fly. They manage to stop the wedding between Graciella and Ken, and hold off the attendants. At last, Barbie puts the antidote on Graciella, turning her back to normal. Graciella reconciles with Taylor and Carrie after lifting their ban, goes to marry Zane, and punishes Crystal by having her clean up after the wedding.
After the ceremony, Graciella tells Barbie and Raquelle that their wings will disappear when they go back to the human world, and then reappear when they return to Gloss Angeles. But Raquelle does not promise Graciella that she will keep Gloss Angeles and the fairies' existence a secret. So, the fairies blow a magic sleeping dust on them. The next morning, Barbie wakes up with no recollection of Gloss Angeles or the fairies; she begins thinking it was a dream. However, she and Raquelle are now friends. Carrie and Taylor tell the two that they reconnected with an old friend and are going back to their hometown of Gloss Angeles, skillfully avoiding any mention of the past events. Everyone says good-bye and things starts anew. Barbie and Raquelle's minds are clean slates.
