The Rock Collector has found a very special rock that she plans to give to the King as a gift. Then it is stolen by the crafty Merchant Fabius. This will become important later.

The beloved King passes away and Morgana becomes Queen of Paradise Island. She soon discovers that she does not have the respect of the island's inhabitants. No one will bow down to her. She has no power. The ghost of her father the King advises her to seek out the Merchant Fabius.

Fabius sells the Queen the stolen rock, which has magical power. It gives the queen the ability to make anyone fear her and therefore obey her every command.

The Queen is delighted by how well her new power works as she scares the island's inhabitants into bowing and obeying her commands.

Although the Queen has great power, she soon discovers that no one likes her, not her friends, not even her Mirror. Abigale sings the troubled Queen to sleep. Something the Queen heard earlier triggers a strange dream about two people in love. Their attempts to get together are thwarted by the Potato Man. Owners of a Potato Restaurant want to catch and cook the Potato Man. They are about to do just that when the Queen wakes up screaming. Her father's ghost appears and the Queen tells him about her dream. She wanted the two people in love to get together. She didn't like how afraid she felt for the Potato Man. The King explains that his daughter values love over fear.

The Queen comes to understand that the way she has been using her power is wrong, but she doesn't know how to rule with love. The Rock Collector enters and tells about the stolen rock. The Queen gives the rock to the grateful Rock Collector, who bows and thanks the Queen profusely. The Queen is confused until the Rock Collector explains that the Queen has performed an act of kindness. The Queen understands that being kind is a better way to be respected.

A kind and generous Queen Morgana goes out into her kingdom to use her power to grant the wishes of her subjects.