Barbie is at the premiere of her latest movie when her co-star and rival, Raquelle, steps on her dress, ripping it. Her stylists, Carrie and Taylor, take her off camera and Carrie, secretly being a fairy, uses magic to mend it. After Barbie goes back to the red carpet, Crystal, another fairy, greets Carrie and Taylor, having just finished taking some pictures of the carpet. She goes back to Gloss Angeles, taking one final picture of Ken.
Back in Gloss Angeles, Crystal shows Princess Graciella the pictures she took at the premiere. She gives the Princess a purple drink, a love potion, which turns her eyes form blue to purple. Crystal then shows the Princess the picture of Ken she took, and Graciella falls in love with him on the spot.
The next day at Wally’s restaurant, Ken, Barbie, and her stylists are discussing the movie premiere when Raquelle shows up, making fun of Barbie’s torn dress. Barbie follows her outside and confronts her, sticking up for herself. The stylists and Ken follow them to watch. While the two are arguing, Princess Graciella, Crystal, and two assistant fairies show up and kidnap Ken. Carrie and Taylor sprout their wings, attempting to stop the Princess from taking Ken, but they’re too late. The portal to Gloss Angeles closes before they can enter it.
Taylor searches for something on a Fairy Phone while Carrie attempts to dissuade Raquelle and Barbie of the fact that they just saw fairies. Carrie finds what she was looking for on the phone, a clothing store. Meanwhile in Gloss Angeles, Ken and the Princess arrive in the royal palace. Ken meets Zane, Graciella’s boyfriend. Zane is outraged, thinking that Ken is trying to steal his girlfriend, not the other way around. Zane challenges Ken to three duels.
Barbie, Raquelle and the fairies go to a clothing store, where there is a Fairy Flyway. The fairies reveal that every empty, closed stall in clothing stores is occupied by a Flyway, and the fitting room attendant is a fairy. They enter the Flyway, teleporting to the top of the Eiffel Tower in Paris. The fairies reveal that Lilianna Roxelle, a fashion critic from the previous movie, is the oldest and wisest fairy living on Earth. They fly through the city, Barbie and Raquelle holding on to Carrie and Taylor’s hands. Back in Gloss Angeles, Ken and Zane continue to prepare for the duel.
Barbie, Raquelle, Carrie, and Taylor arrive at Lilianna’s house, stating their problem. Lilianna reveals that Graciella must be under a love potion, which adds red to the eyes. She gets a vial of antidote for the love potion, gives it to Barbie, and lets them use her portal to Gloss Angeles.
They arrive in the fairy city, an island floating in the sky. The fairies take them to Wings ‘n Things, a store that sells clip-on wings for human use. After some practice with the new wings, the four girls set off to the palace, the highest point in the city. Meanwhile in the palace, the first phase of the duel between Ken and Zane begins. The first phase involves casting their best magic spell. Ken can’t cast any spells, but he cleverly avoids all of Zane’s blasts.
Barbie and her friends continue flying up to the palace, but encounter turbulence and almost fall. They land on some pegaponies, colored, flying horses that fly them the rest of the way. When they near the palace, the group encounters several swirlnadoes, pink and green tornadoes that will make even the best flier lose their balance. Barbie volunteers Raquelle to guide them through the swirlnadoes, saying that she is the best horse-rider of the four. The group makes it through successfully, arriving at the palace. They sneak into the palace disguised as chefs.
Once inside the palace, Barbie hears Ken yell and the four fly up to find up. Ken and Zane are continuing their duel. Barbie flies in front of Ken to stop Zane from blasting him again. Barbie attempts to give Graciella the love potion antidote, but the Princess freezes her, Raquelle, Ken, Carrie and Taylor with a spell. Crystal reveals that Carrie and Taylor are in the palace, and Graciella (who has hated Carrie and Taylor ever since they abandoned her) banishes the two and their human friends to the dungeon by trapping them in Fury Spheres. Graciella makes Ken propose to her with a spell.
The wedding begins, but Barbie and her friends are still stuck in the dungeons. Carrie tries several random items (a pair of novelty teeth, a rope, and a baseball bat) to try to break the cage, but none work. Carrie’s shoes don’t help, either. Barbie and Raquelle sit down and talk, discovering that their hatred towards each other is a complete misunderstanding. They forgive each other and promise to be friends, earning themselves real wings, because forgiveness lets you fly.
The two fly up to the grand hall to rescue Ken with their new wings. Zane objects to the wedding, trying desperately to win Graciella back. Barbie and Raquelle stop the wedding just in time, revealing to the public that the Princess is under the influence of a love potion. Raquelle distracts the assistant fairies while Graciella battles with Barbie. Barbie finally releases the antidote over Graciella’s head, curing her of the love potion. The Princess confronts Carrie and Taylor, who reveal why they seemingly abandoned her and got banished. The three become friends again, and Graciella sentences Crystal to clean the entire palace after the wedding reception, stating that she and Zane were to get married.
Graciella tells Barbie and Raquelle that their wings will disappear when they go back to Earth, and then reappear when they return to Gloss Angeles. Raquelle says that she plans to tell the world about the fairy secret, which is against fairy law. The fairies aren’t happy about this, but she still plans to. The next morning, Barbie wakes up with no recollection of Gloss Angeles or the fairies, thinking it was a dream. However, she and Raquelle are still friends, fairies or not. Carrie and Taylor tell the two that they reconnected with an old friend, meaning Graciella, and are going back to their hometown, meaning Gloss Angeles.
