Norm the Genie returns and tricks Cosmo and Wanda into disliking Timmy by replacing him with a selfish, unappreciative clone version. When Cosmo and Wanda quit, a singing contest is held in Fairy World to determine who gets to replace Timmy's godparents. And there is another big problem: Norm is a participant.

Poof comes into existence when Cosmo and Wanda decide to have a child of their own, and Timmy wishes it so. However, because the fairy baby's magic is developing and uncontrollable, villains called the anti-fairies (polar opposite of fairies) and pixies (business fairies) seek to steal the fairy baby so they can take over the fairies' home, Fairy World.