Having narrowly escaped Lavan's capture of everyone else in the Royal Paradise, Tiffany flies past the rapidly-expanding Jewel Desert and to Paradise Estate — although not without her bushwooly guide falling into the desert and being swiftly crystallized — and is directed to talk to Megan. Meanwhile, since the princesses won't help him take control of the wands, Lavan orders them all thrown into a lava pit.
Spike and the 'woolies manage to escape, but run into icy beings called the Ice Orcs, ancient enemies of Lavan's lava demons. Spike fends them off by breathing fire, but this makes the orcs suspect that he's a lava demon himself. Spike protests that he's a dragon, not a demon; the prove his claim, an ice orc grasps his arm. When this only proves uncomfortable, the orcs accept his claim; ice orcs and lava demons cannot bear each other's touch. The princesses themselves escape by sheer luck when the magical meltdown Lavan caused neutralizes the guards.
Tiffany reaches Paradise Estate and meets up with Megan, who agrees to come with her to Lavan's lair and use the Rainbow of Light to restore balance to the world. Underground, the princesses are obliged to swallow their prides and crawl through mud to make good their escape and meet up with Spike's group, the latter having gotten the ice orcs on their side to help them stop Lavan.
In his lair, Lavan decides to extract the power from only one wand at a time. This proves a successful approach, and his left are turns into crystal. He also gains the ability to shoot magical rainbow beams, which he demonstrates by shooting them at Sludge when the latter informs him that the princesses have escaped. Lavan then transforms his right arm and head. At this point, the heroes, led by G'nash, make their way through secret tunnels along the walls of Lavan's chambers, but are given away by the bushwoolies sneezing. Armed with his newfound powers, he quickly defeats them and sends them to the dungeons.
Meanwhile, as Megan and Tiffany fly towards Lavan's lair, they are hit by another magical wave and the Rainbow of Light falls into the Jewel Desert.
This episode contains examples of:
- Beam-O-War: When confronted by the lava demons, G'nash responds to one of them shooting a beam of fiery energy with an icy one of his own. The beams meet in the middle and enter a stalemate, which keeps G'nash distracted enough for two other demons to circle him and hit him from the side with their own beams.
- Cliffhanger: The episode ends with the Rainbow of Light falling into the increasingly dangerous Jewel Desert, seemingly beyond retrieval.
- Ill-Timed Sneeze: When the heroes are sneaking around the walls of Lavan's chambers, the bushwoolies' sneezing alerts Lavan to their presence and allows him to find and defeat them.
- Instant Ice: Just Add Cold!: Despite being in a seemingly waterless cavern, the ice orcs simply need to shoot icy beams from their hands to create a ring of prison bar-like icicles around Spike and the bushwoolies.
- Skewed Priorities: When Lavan orders them thrown into a lava pit, one of the princesses complains that this will ruin her complexion.
