Poof has a fairy disease called Chicken Poofs which turns him into a chicken...one catch, it's contagious, so anyone he sneezes on turns into a chicken! Dr. Rip Studwell has the cure, but Poof becomes afraid of the needle and runs away. Can Timmy and Cosmo catch him before he turns the whole town of Dimmsdale into chickens? Meanwhile, due to an accident involving all the medicine being dropped, Dr. Rip Studwell and Wanda have to travel to a temple in Fairy World in search for more.
Timmy and Cosmo are wakened up in the morning because of some mysterious chicken sounds, and find out that its Poof and he has gotten the Chicken Poofs, a highly contagious magic disease that instantly turns people and fairies into chickens. Wanda has called Dr. Rip Studwell. Cosmo gets the Chicken Poofs too, but Timmy doesn't because Wanda put him in the fishbowl to protect him. The doctor comes in but when he's about to give Poof the booster shot, he shows Timmy, Cosmo, and Wanda how big the needle is, and they become as freaked out as Poof is, and Poof flees, so they all go behind him. When they get downstairs, Timmy finds that Poof has already infected Mr. and Mrs. Turner, so they continue chasing him. After Poof infects Mr. Crocker, who in turn is mistaken for a real chicken and hunted by his mother, Timmy and his fairies catch up to Poof. Dr. Rip Studwell is about to vaccinate a terrified Poof, but as he pulls out the giant needle, Timmy, Cosmo, Wanda, and Poof all freak out, but Dr. Rip Studwell thinks that they're freaked out at the sight of his hairy eyebrows instead of the giant needle, so he plucks his eyebrow, but he drops the vaccine and tells Wanda to go and get more. Wanda takes Dr. Studwell with her.
Cosmo and Timmy follow Poof to the "U-Bet-Yer-Life" Insurance company. It just happened to be "Bring your pet chicken hawk to work day" at that company, and the predatory birds quickly turned on their human owners when Poof's presence turned them into chickens. Timmy and Cosmo chase Poof to the Pirate Stadium, and the baby fairies' sneezing causes thousands of people to turn into chickens. Meanwhile, Doug Dimmadome's chicken truck fails to come to his failing chicken nugget business, the "Chicken Dippin' Dippadome", so he starts hunting all the people Poof turned into chickens from the stadium and insurance building. Doug Dimmadome is going to take these people-turned-chickens to his deep fryer to be cooked into chicken nuggets.
Meanwhile, in the Fairy World jungle, Dr. Rip Studwell tells Wanda to go inside the Chicken Temple and get the mystical Cluck Flower, telling her that only females come out alive. Wanda successfully retrieves the flower, and gets out alive, but some Amazonian Fairies capture her. They want to sacrifice Wanda to the giant eel that lives in the volcano, all the while treating Dr. Rip Studwell like a god. Wanda gets alive but burned, and Dr. Rip Studwell gives the flower to a fairy girl named Delores in the Fairy Pharmacy so that she gives her 20% off. This leaves Wanda fuming, but they have the medicine and can now cure Poof.
Back in Dimmsdale, Poof goes to Doug Dimmadome's restaurant, and back into the kitchen where the chickens are fried. Poof gets stuck in the Super Sticky Sauce on the ground. Wanda and Dr. Rip Studwell appear and he reveals that the giant booster shot is a toy and the medicine is drank from a cup. Poof drinks the medicine and is cured, and all the people he infected are returned to normal but are still in danger from being fried. Timmy wishes that the fryers would break moments before his parents are dipped into the deep fryer. Doug thinks that he's ruined but Timmy tells him that he still has the eggs that the chickens laid, which he can sell with dipping sauce. Doug is excited about this idea, so he turns his restaurant into the Egg Dipping Dippadome.
At the Turner House, Wanda is still mad at the Doctor and gets madder when Cosmo gets sick and the Doctor says that he gets a discount if he gives a Schnauzer to the pharmaceutic lady. Wanda is so infuriated that she poofs the Doctor to where the giant eel in the volcano resides. The eel then burns Dr. Rip Studwell to a crisp with its fiery breath.