Blair comes home from a long day of work at Cafe Gardania. Emily, her younger sister, is watching the annual Princess Procession on TV. It involves princesses from other kingdoms coming in the original Princess Charm School to learn their full potential. A commoner is also allowed in if they win the lottery that wins them a scholarship to be a lady royal, a princess' most trusted advisor. Blair asks for Her sister, if their mom is okay, but Emily tells her the doctors just said she was "comfortable". Blair wishes she will better, and wishes Emily could grow up in a better neighborhood, as the family lives in the poor part of Gardania and has no money. Blair decides she will work hard for her family.
On the TV, Blair, Emily and their mother watch as the lottery winner is picked: This winner was Blair! This is because Emily entered her many, many times. Blair was shocked! Blair doesn't want to leave her responsibilities behind, but her mother sees it as a good opportunity and this'll change their lifes forever. So, Blair leaves to go the school in a carriage with a man named Brock. In the carriage, Blair's arm gets jogged as she tries to put on lipstick, smearing it on her face, and she knocks over a cup.
At the school, she is greeted by Prince, a large dog that recognizes her. The headmistress of the school, Alexandra Privet, sees Blair on the floor with Prince and takes her to her locker, explaining things about the school along the way. Grace meets Blair at the locker by bumping into her with a cupcake. Grace is a sprite that has to be Blair's personal princess assistant. Every student has one. Blair uses her magical locker to change into her school uniform, and Grace takes her to her dorm room to get settled. Blair meets Isla and Hadley, her new roommates, andCaprice and Harmony, their assistants. They become good friends for Blair. They have to go to the Starlight Welcome immediately to get their training crowns.
At the welcome ceremony, Miss Privet explains for the children, that they will get real crowns one they have completed the semester with high expectations. A teacher named Dame Devin announces she will quit teaching after her daughter Delancy becomes princess of Gardania at the end of the semester. She explains that she has lived at the palace since her sister-in-law, Queen Isabella, and her family died in a car crash. Isla and Hadley discuss the legend that not all of the family died. They have a curtseying class after the welcome ceremony, and Blair gets distracted by Hadley and Isla and bumps into Delancy. Delancy develops a strong disliking for Blair. Hadley and Isla tell Blair they will be her friends, and that Blair can do anything Delancy can do.
Blair becomes pessimistic after she sees Delancy walking with a stack of 21 books on her head without a problem, when she can't even balance one. Many of the girls have problems, but when Dame Devin sees Blair's face, she becomes shocked. She tells Blair to get out of her class and tells her she doesn't belong. Delancy later on makes her assistant, Wickellia, tuck a tablecloth into Blair's skirt and Blair ends up being further embarrassed when she drags it off the table.
Isla and Hadley try to cheer up Blair by telling her that Dame Devin was once a lottery winner like her. However, no princesses picked her to be their lady royal, not even Queen Isabella. Blair receives a package from Emily containing some letters and a drawing of a baby Blair being left on her mother's doorstep. Blair explains to her friends that she is adopted, and so is Emily. Miss Privet comes to tell Blair some bad news, but stops when she hears this.
The next day, at a ballroom class, Blair knocks over Portia, Delancy's friend, and is kept behind after class. Miss Privet tells her that Dame Devin wanted her expelled, but Miss Privet knows about how Blair wants to become a lady royal to help her family, so she wants to personally tutor her. She tells Blair that being a princess is about character and confidence. One without the other is a problem, and she tells Blair that no one can make her feel inferior without her consent. With help from Miss Privet, Blair greatly improves in her balance, grace, dancing and more.