Spencer is caught in an Internet scam when he inadvertently sells his emotions in exchange for the secrets of the universe. Meanwhile, Gwen is alarmed to discover that nobody remembers who Michael is. Gwen must find a way to break Spencer's contract and regain his emotions, while at the same time figure out a way to rescue Michael from Faerie. Gwen makes the startling realization that O'Leary is working for Morgana.

Gwen has succeeded in rescuing Michael from Faerie, but Michael is still under a spell that has caused everyone but Gwen to forget who he is. As Gwen works to undo the spell, she also pursues O'Leary - whom she discovers has been hiding right under her nose. O'Leary tells Gwen that Merlin's Stone is the key to saving her mother. Meanwhile, Merlin is attacked by Morgana.

Intent on saving Merlin, Gwen enters Faerie and succeeds in going back to Merlin's time. Tapping into her former life as Guinevere, she remembers the secret of how to find Merlin's Stone. Gwen manages to rescue Merlin and, thwarting Morgana's attempt to capture the crystal, returns to the 21st century with the crystal to save Karen - with O'Leary in hot pursuit.