Timmy Turner has kept his fairy godparents Cosmo and Wanda a secret for one whole year thus far. He receives a special gift, the "Fairy-versary muffin", which can grant any user one rule-free wish. With Timmy's school teacher Mr. Crocker constantly spying on him to prove that fairies indeed exist, the Fairy-versary muffin falls into other people's hands, eventually ending up in Mr. Crocker's. Using the muffin, Mr. Crocker captures Timmy's fairies and wishes for an oppressive world ruled by him, transforming Dimmsdale into Slavesdale. Now, Timmy and his fairies must get the muffin back and save Dimmsdale. This is the very first Fairly Odd movie in the series.

Set during the episodes "Totally Spaced Out" and "Spaced Out!", Mark Chang comes to earth and tells Timmy that his planet has been invaded by a cute alien race known as the Gigglepies. Since the Yugopotamians are afraid of anything nice and sweet, they are powerless against them. Timmy departs to fight the menace.