The movie opens with the fairies making final preparations for the Pixie Hollow Games. Rosetta is busy helping to set up flowers for the big night, when she meets a new garden fairy named Chloe, who drops a lump of dirt in front of her, accidentally getting her dirty and, because she's ironically afraid of dirt, causing her to freak out until Silvermist douses her with a water droplet.
Chloe announces she has been training for the Pixie Hollow Games and is excited to be competing. Even though the garden fairies have little hope of winning and haven’t ever won, Chloe is confident that she and her partner can turn things around and end the losing streak. When it comes time for the team selection, Chloe has already volunteered and Rosetta is selected to be her partner. She protests, but soon finds out that no one else is willing to compete. So she reluctantly agrees. Vidia remarks "This is going to be good," hoping that Rosetta will humiliate herself.
The night of the games, Rosetta wears a fancy, formal, pale-red gown, certain that she and Chloe will be eliminated after one round. The storm fairies, Rumble and Glimmer, are the heavy favorites to win the competition. They have won the last four years in-a-row, winning four winners’ rings each and wanting to get a final ring, "one for the thumb".
The first event is leapfrogging. Similar to chariot racing, the teams ride on frogs, yoked together by an harness. Then the competitors leapfrog over one another to the finish line. Rosetta refuses to get onto the frog, but finally does when the spectators yell in protest, leading to total chaos on the racetrack. In the end Fawn and Buck, the representatives for the animal-talents, win the race, with the storm fairies coming in second. The garden fairies come in last, but are still in the competition, (much to Chloe’s delight and Rosetta’s annoyance) because in all the commotion, they accidentally smashed the riding harness of the healing-talent fairies, which eliminated them.
After the race, it becomes clear that Rumble (who always talks about himself in third person) is only interested in winning and doesn’t care about his teammate, much to Glimmer’s annoyance. The garden fairies congratulate Chloe, but try to ignore Rosetta, until Chloe says they have to support them both as a team. The garden fairies now have high hopes that they can win, now that they’re past the first event.
The next day, Rosetta and Chloe continue to compete in a series of games, such as dragonfly water skiing, twig-spheres, and mouse polo, slowly moving up in the standings during each game. But things start to turn south in the final challenge of the day. At the end of the teacup race, there’s a series of chutes covered in slimy mucus that the teams must slide down to get to the finish line. Chloe dives down the chute with no trouble, but Rosetta, afraid of getting muddy and dirty, nervously crawls down the chute, to Chloe's dismay.
However, they're still in the games since the Iridessa and Lumina fell short after Iridessa coated their cup in too much pixie dust, causing them to crash into the roof of the cavern. Regardless, Rosetta's actions put them in last place, and no team has ever won from last place. For the first time in the Games, Chloe is starting to doubt Rosetta. The night ends with Rosetta feeling that she has let Chloe down.
Rosetta decides to conquer her fear and dresses in the garden fairies' uniform for the derby cart race, and announces she has a plan to win the Games. The race starts with the storm fairies taking the lead, but the other racers can catch up by taking a series of challenging shortcuts. Vidia and Zephyr take "the jump" shortcut and crash, then Terence and Fairy Gary try to jump the pond but land in it, leaving just the garden and storm fairies.
Rosetta and Chloe take the mudslide mountain shortcut and successfully make it over thanks to Tinker Bell adding built-in spikes to the wheels and a propeller to cross the steep mountain and get ahead of the storm fairies. However, in the last leg of the race, Rumble uses Glimmer's lightning ability to zap one of the wheels causing the girls' cart to crash. Glimmer is appalled. Seeing their cart destroyed, Rosetta and Chloe push their cart over the finish line and at least finish together.
Rumble is already celebrating his victory, when Queen Clarion announces that the garden fairies are the winners. Rumble protests, until the Queen shows him that Glimmer abandoned him just before the finish line for cheating, thus his victory doesn't count. Therefore, the garden fairies win. The movie ends with Rosetta and Chloe celebrating with their best friends that they broke their losing streak.
THE END.