The forest has run out of bath sponges and is becoming very stinky. Their latest order never arrived, and so the heroes must quest under the sea to Merhaven to collect them. However, Hoofius, whose singing stinks worse than his armpits, decides to enter the annual Merhaven Song Contest and accidentally causes a simple quest to collect bath sponges to turn into something much more perilous.

Only wood elves have ever defeated the mighty Eye of Vernon hat, so when the Riddlemaster wears the eye to take over the forest, the heroes quest to Wood Elf Wood to get help. However, Twinkle really doesn't want to, as wood elves are so stuck up! Struggling to contain her irritation with their high-and-mighty ways, Twinkle still manages to offend them, and the heroes wonder how they will ever save the forest now.

The heroes have found the Wishing Trident, which will help them on their quest to prevent the summoning of the legendary two-headed dragon, Iceburn. The problem is, Blossom has used one wish by mistake, and Herbert has accidentally used a second one. Now the heroes are left to defeat the dragon using only one wish, a never-ending ice cream cone (with sprinkles) and a giant spicy sausage hat!