Every time a baby laughs for the first time, a fairy is born. She immediately sets off on the long journey to Neverland, where all the fairies and elves live. Each of these mysterious beings has a special gift. Animal fairies talk to the animals, fairies of light bring light into the world and water fairies place dewdrops in spider webs.

Tinkerbell, a little blonde fairy, has the gift of being able to fix things and invent things. But she would much rather be a nature fairy and so she tries to change her gift. However, this causes a lot of fuss and excitement in the Valley of the Fairies.