At their home, Dream Castle, the ponies are running and playing through flowery meadows and grassy green fields with their animal friends. Elsewhere, Baby Lickety-Split is practicing a new dance step, as Spike, a baby dragon, accompanies her rehearsal on the piano. Meanwhile, at the Volcano of Gloom, a wicked witch named Hydia is planning to ruin the ponies' festival, but her two incompetent daughters, Reeka and Draggle, are not up to her family's standards of wickedness, and she laments about it, before sending them off to ruin the festival. During the baby ponies' dance performance, Baby Lickety-Split attempts to add her own dance and ruins the whole performance. She is told off by everyone and Runaway (dependent), followed by Spike, only to end up falling down a waterfall and trapped in a valley. Meanwhile, Reeka and Draggle try to ruin the ponies' festival by flooding the area, but thanks to the Sea Ponies, end up getting washed away in an overflowing waterfall.