The anti-fun Pixies have taken over Fairyworld and quickly block all fun wishes including Timmy’s mini-golf course. The same course he promised Principal Waxelplax he already completed for his school project. Luckily the Head Pixie is a golf nut and plays Timmy 18 holes for one wish. If HP wins, Timmy has to give up Cosmo and Wanda. But if Timmy wins he’ll wish Fairyworld back to the fun-lovin’ fairies!
Timmy needs to create a new miniature golf course for his school project (he actually had no project, but his principal's bad guessing led to this). Timmy does not realise that he could simply wish for the course to be fixed until Wanda blurts it out, however, the wish is not granted. A special edition of the Wand Street Journal reveal that the pixies have bought out the fairies and took over Fairy World. Suddenly, Timmy, Cosmo and Wanda are sent to Fairy World by pixies magic.
Once they get there, everything is warped by the pixie magic into a business oriented city called "Pixies Inc". The recent change causes all the fairies to panic. Timmy goes to Jorgen, who tells him that the pixies bought Fairy World in a hostile takeover (which, despite having "hostile" in it, was much less fun than it sounds). As Wanda explains to Timmy, Pixies are just as magically powerful as Fairies, except they treat magic more like a business instead of something that's fun and free-spirited--and they also have horrible taste in hats. As of today, all wishes must now be submitted in writing. The change doesn't even allow Jorgen to bully the trio anymore. Timmy, however, is determined to get his miniature golf course fixed. Sanderson hears their complaint, and tells Cosmo they have been waiting for him. Wanda thinks they are going to fire Cosmo, but instead, he's promoted. It turns out the pixies need to make the fairies think they are still important so that they stay in line, by giving a fairy a large title with a good credit. They cannot trust someone who is too intelligent to understand their motives, so they give Cosmo the line of Vice president (actually "Rice" president). They even make Jorgen work as his assistant. Fortunately for Jorgen, Cosmo is too stupid to get revenge for his centuries of torment from Jorgen, meanwhile Jorgen attempts to be free spirited despite being under the pixies rule.
Timmy is left with no other choice but to submit his wish in writing and do the best he can otherwise. Wanda returns and tells Timmy that his wish has been rejected for being too much fun. Cosmo later comes by and tells Timmy that he's actually really surprised that his mini-golf wish was rejected, because the Head Pixie actually loves golf. Timmy takes advantage and manipulates Cosmo into granting his wish and making the Head Pixie come over for a round of golf, in a way of sucking up to his boss. The course is transformed and the pixies come to play.
Timmy and Head Pixie make the game a little more interesting by betting on the game:
If Timmy wins, he gets one free wish, voided by rules entirely.
But if the Head Pixie wins, he gets Cosmo and Wanda, and can use them to do the least fun things possible.
The Head Pixie continuously cheats, but Timmy is very skilled at mini golf and succeeds at every course. When Timmy realises that if he screws up on his last course, he will be ruined. Cosmo rebels and cheats for Timmy. Despite this, the Head Pixie wins, and he fires him, but fortunately, Jorgen's free-spiritedness knocks the ball out of the hole, causing Timmy to win. Timmy wishes that the fairies owned Fairy World again, and Cosmo approves it.
Timmy's teachers enjoy the miniature golf course, as Timmy decided to stick with the one he made himself. Although Wanda is proud of Timmy, she doubts it will get him much extra credit and Timmy starts to regret it when the course proves to be dangerous making him hope he doesn't get expelled. Jorgen punishes the pixies by using them as darts for his dart board, taking advantage of their pointy hats.