Timmy, despite being unable to enjoy his summer vacation, chooses to do so in order to impress Tootie, who now works for the Help Creatures Dimmsdale Research Center.

Meanwhile, two children from a rich family, Marty and Mitzi Mulligan, are excited about going to Hawaii, until they learn their parents will not be going, instead sending them off with a nanny, who turns out to be Vicky.

Heading for Hawaii, Foop runs into Mr. Crocker at the airport, after he was sent there by his mother in the hopes of curing his obsession with fairies.

Realizing that Foop plans to cause mischief for Timmy and destroy Fairy World, Crocker agrees to help him in acquiring the Abracadabraium.

Crocker, who is given the money for the fire dance by Mr. Turner, and Foop, having taken on human form, distract the pair and steal the Abracadabraium from Timmy, putting Fairy World in danger and weakening Cosmo, Wanda and Poof.

Seeking to get the Abracadabrium back, the pair and the fairies recruit Marty and Mitzy to help and soon discover that Foop plans to drop it into a lava pool within a volcano.

Angered, Foop risks touching the substance to destroy it, leading to Timmy struggling with him to get it back and falling into the lava with it.