Like the game of telephone, Chelsea and her friends see just how easy it is for misunderstandings to occur. In Dreamtopia, a misunderstanding sends the Mopplekin into a panic. Barbie, Chelsea and Notto must climb the Mountains of Mousse to get the correct message out and bring the the Mopplekin home.
A rainstorm keeps Chelsea from going outside, but that doesn’t stop her from thinking about Dreamtopia! She arrives in the magical world to find an outbreak of static electricity that is causing everyone’s hair to stick together. They must find the source of the shocking problem or their Disco Dance Party will be ruined. But when Forest Princess Barbie and Chelsea realize that they can’t control the problem, they agree to just roll with it.
At home, Chelsea is struggling to do a cartwheel but refuses Barbie’s offer of help. Chelsea’s imagination takes her to Dreamtopia where she finds herself participating in the Hairathalon. When she gets apprehensive about the Mullet Gullet challenge, she seeks the advice of Forest Princess Barbie, whose encouraging words help her complete the competition.
When Chelsea discovers that Otto has torn a page in a cookbook that he borrowed, she goes to Dreamtopia, where the Apprentice Queens perform an opposite spell that mysteriously goes haywire because Notto Prince covered up the fact that he tore a page from their spell book. Temporarily magical, Chelsea is able to reverse the spell and Notto learns a lesson in respecting other people’s property.
While making friendship bracelets with Zoie, Chelsea imagines how they would share them in Dreamtopia. In Wispy Forest, friends create fantastical woven creations but struggle with sharing them until a talking tree needs help. Barbie, Chelsea and the others must work together, using their creations to help him reroot.
Barbie’s mismatched socks prompt Chelsea to think about having the confidence to be different. In Dreamtopia, Barry, a new Strawberry Bear in town, joins Chelsea and Princess Berry Swirl Barbie as they head out for a bear-filled boat outing. Barry’s self-confidence and special seedless skin save the day when another friend gets into a sticky situation.
When Chelsea is asked by Zoie to watch over her egg incubator, Chelsea wonders what it would be like to be in Dreamtopia when baby Glitter Balls are hatching. She is asked by the Gem Fairy, Sapphire, to keep watch over the Glitter Ball Eggs. Once they hatch, Chelsea and Barbie quickly find out that being responsible for something small can still be a huge undertaking!
A discussion about what cloud shapes look like to Chelsea, Barbie, and Otto prompts a trip to Rainbow Cove, where Rainbow Queen Barbie has commissioned a statue of the Winged Unicorn. But when Chelsea and the Notto Prince disagree about what the sculpture should look like, they decide to find the Winged Unicorn to invite her to model for the sculpture, only to learn that the elusive creature would prefer not to be in public, until an action of Chelsea’s convinces her otherwise.
Chelsea and her friends are making kites, but when Otto takes all of the material for his kite’s tail, she imagines herself in Rainbow Cove where everyone is creating kites for that evening’s ceremony. Chelsea and Rainbow Queen Barbie work together to build a kite, but put theirs aside to help the Notto Prince re-build his damaged kite. He sends them all over the realm, wearing out their good intentions right when he needs help the most.
Chelsea hears a scary noise coming from under her bed, and instead imagines herself in Sweetville where residents are hearing a strange noise which is causing the Candy Castle walls to shake apart. Chelsea and Barbie go off to investigate and through a song, Chelsea learns to face her fears and discovers what was making the strange sound.
As Chelsea helps Barbie clean up her room, she wishes there was a way to do it super fast. In Sparkle Mountain, the Apprentice Queens create a mess with their spell-testing. Chelsea builds a cleaning robot to help them out, only it malfunctions. With the castle inspector on his way, Chelsea and Barbie must clean up the old-fashioned way, with hard work.
When Barbie gives Chelsea a thoughtful gift for no particular reason, Chelsea imagines herself in Wispy Forest where everyone is picking someone to give a gift to. She picks Forest Princess Barbie, but worries that her simple gift is not enough, until she finally learns that the best gifts come from the heart.
After Chelsea can’t find a hair clip in her supply box, she imagines herself in Wispy Forest, where everyone seems to have experienced losing an item after not returning it to its proper place. A giant tumbling ‘tangleweed’ of Wispy Forest is formed, and rolls through, picking up the stray items. Barbie, Chelsea and the Forest Princesses have to untangle the ball of stuff, and learn a lesson about putting things away after using them.
Barbie, the Rainbow Princess, loses a magic stone that provides all of the color to Rainbow World. Worried that she won’t be able to recover the stone before her crowning ceremony, Chelsea and Honey help her look, as they race along the rainbow ramps against the Notto Prince, who wants the stone for himself.
When the bridge over the lemonade river is destroyed, the creatures of Sweetville are worried that they won’t make it across the river for the Innovation Celebration being held at the Lollipop Gardens. The townspeople work together using the unsuccessful ideas of the mysterious Captain Snickerdoodle, revealed to be the Notto Prince, who destroyed the bridge on purpose.