Blythe and the pets lie around bored at the park, having nothing to do. Vinnie falling onto Minka's applecore sculpture and causes her to lose focus and screech, waking everyone else up. Blythe suggests everyone tell the most interesting thing to happen to them, and Pepper is the first up. She tells a story about how an old woman on a bus picked her up and carried her off the bus, mistaking Pepper for a purse. When asked what happened next, Pepper quickly rattles off the remaining details about winding up in the Bahamas and Greenland before returning to Downtown City. Once finished, Blythe asks who wants to tell another story—despite Vinnie, Zoe, and Minka excitedly wanting their turn, Blythe asks Penny Ling, who becomes nervous.
Zoe steps in, recounting a story about Juan Jorge José, a modeling dog used in commercials. Juan fell in love with Zoe and asked her to "hop the fence" and accompany him to Hollywood. Zoe declined, taking up work as a photography model instead. Vinnie then takes his turn, reminiscing about getting his tongue stuck on a train and having to travel across the country thanks to it. Afterwards, Minka recounts about how she made her way to a king's dinner, where after messing around with his dinner, she spills wine on his robe. Liking the new look, Minka tosses food at his face to give him a makeover. With Minka wrapping up her story, the only pet present who hasn't told a story is Penny. After telling about getting a piece of bamboo stuck between her teeth and getting scared at a stick thinking it was a snake, Penny convinces herself she isn't interesting and runs off crying.
Back at the Littlest Pet Shop, Blythe attempts to help Penny feel better, saying that Penny can take her time and that everybody has had something interesting happen to them. Penny then talks about the Green Bean Fairy Queen, who gives Penny hugs and causes flowers to grow out of her head, which catches Blythe's attention. Blythe gathers the other pets to come hear it, and Penny talks about having come from the misty forest of Galloway, where the bean fairies give her bean juice to drink each morning.
One day, someone stole the Watering Stone, the source of water in the forest, which causes the vegetation to shrivel and die. The fairies immediately blame the goblins and prepare themselves for war, but Penny intervenes, hoping to resolve the matter peacefully. She makes her way up the mountain where the goblins live, and upon reaching the top, they challenge her to a dance test before they allow her to speak. She mesmerizes the goblins with her ribbon-twirling dancing, and the goblins agree to hear her out. The goblin leader claims they did not steal the Watering Stone, which an old wise-mongoose confirms. He tells Penny to find "the one who hates the beans of green" and shows Penny the way. As the two of them walk through a windy desert, the wise-mongoose leads her into a hole in the ground covered by sand. She tumbles down the long shaft as the wise-mongoose waves goodbye on the surface. It is at this point that Mrs. Twombly announces that the pets' owners are present and that the pets need to go home. Disappointed in leaving off at a cliffhanger, they eagerly await the continuation the following day.
The following morning, the pets except Penny sit behind the day camp door, not moving until Penny finally arrives. Although she initially forgets where she left off, she eventually finds it and continues her story: Penny falls into a dungeon, where the Spirit of the Flame (resembling Russell) tells her it's pretty likely the Crab Witch has stolen the Watering Stone, warning that the path is up ahead but is heavily booby-trapped. After a boulder flies by and destroys the dungeon door, narrowly missing Penny, she goes through the corridor behind it, carrying the Spirit of the Flame on a torch as a light source.
After a short walk, Penny finds herself in the room of the Crab Witch (played by Pepper), who tells Penny that she hates green beans but does not explain why she stole the Watering Stone. Penny proceeds to throw the torch at the display case the Crab Witch kept it in, grabs it, and makes a run for it with the Crab Witch in pursuit. The Crab Witch gets hit by her own suction-cup arrows, then trips and falls. Penny climbs out of the hole she fell through, then walks back through the desert and climbs the goblins' mountain again, this time with the Watering Stone. When she announces the good news to the goblins, the cliffside crumbles beneath Penny's feet and she tumbles down but is rescued by a small group of bean fairies. They help put the Watering Stone back in its place, revitalizing the land.
Penny calls it an end to her story, but Minka asks where the flower-growing hugs came from. Penny briefly continues the story, where the Green Bean Fairy Queen (as Blythe) gives Penny a hug as thanks, creating a laurel of flowers on her head. Pepper questions the story's authenticity, to which Penny confesses that it's not real. Blythe points out, however, that Penny's ability to improvise a story like that makes her inherently interesting, which lifts Penny's mood. The pets ask to hear another story, and she begins with introducing a pet shop on a distant planet.
This episode contains examples of (YMMV entries go here):
- Annoying Arrows: The Crab Witch's booby traps are all suction-cup arrows.
- Book Ends: Both Pepper's story, told in the Cold Open and Penny's story, which closes the episode, end prematurely, and another character has to remind the storyteller to explain the missing parts.
- Building Swing: How Penny gets to the top of the goblins' mountain.
- Continuity Cavalcade: In some blink-and-you'll-miss-it examples, each of the photographs of Zoe shown at the beginning of her story is taken from a getup from another episode. In order of appearance onscreen
◊:- The first photograph, on the bottom right, is Zoe as how she usually looks like on the show.
- The second photograph, on the bottom-left, is Zoe when she tries to one-up Madam Pom at the storefront window in "Eve of Destruction."
- The third photograph, in the middle with the tiara, has Zoe wearing her outfit and hairstyle used for the High Society event in "Frenemies."
- The fourth photograph, on the upper-left, depicts Zoe as how she appears in the musical sequence in "Lights, Camera, Mongoose!"
- The fifth photograph, on the upper-middle, is taken from Act 3 of "Terriers & Tiaras."
- The sixth photograph, on the bottom-middle, has Zoe in the clothes she used in the fashion show in "Blythe's Big Adventure - Part 2" and in the sendoff performance in "Summertime Blues."
- The seventh and last photograph, on the upper-right, is a repeat of the second photograph, though with a different pose and background.
- Continuity Nod: When the Crab Witch loses her balance and skids to a halt on the floor, the position she's in is similar to Pepper's when Scout jumped on her head in "Books & Covers."
- Decoy Backstory: Penny Ling tells the others that she grew up in a mystical forest and was raised by "green bean fairies". At the end, she admits that she made it all up so that she'd have an interesting story like everyone else.
- Everyone Has Standards: The goblins pride themselves on not being nice, but they call the wise-mongoose out for eavesdropping.
- Evil Laugh: From the wise-mongoose when Penny tries to directly get information out of him. Crab Witch gets one too, being the villain of the story and all.
- Exactly What It Says on the Tin: The Crab Witch explains herself as a witch that's crabby. She also has a crab on her head.
- Fantastic Racism: The fairies accuse the goblins of stealing the watering stone, why? Because they're goblins so they must be thieves! Turns out that Goblins do not steal.
- Fast-Forward Gag: Used to skip from Penny climbing the mountain to her falling through the sand.
- Framing Device: The story is framed by Penny Ling telling it to Blythe and the pets.
- Ice-Cream Koan: The wise-mongoose, who looks and sounds like Sunil, utters one.Wise-Mongoose: "The reason the chicken crossed the road is known only by the chicken, and not by the road.
- Idiosyncratic Wipes: In addition to the photographs mentioned above, a Fairy!Zoe and Fairy!Minka sometimes fly across the screen.
- Informed Ability: The Crab Witch does nothing to show that she knows any form of magic.
- It Was a Dark and Stormy Night: How Pepper begins her story, except it's in the day.
- Jerkass Ball: The other pets are pretty harsh toward Penny, particularly Pepper, until she can muster up a story.
- Mundane Made Awesome: Vinnie's interesting story is simply him taking a train that went across the whole country, which would normally not be interesting at all... if he didn't do it because his tongue got stuck on it and spent the whole trip holding on from the outside.
- Mythology Gag: Green Been Fairy Queen Blythe looks a lot like the Blythe doll Hasbro released as part of the "Moonlight Fairies" Littlest Pet Shop toy line. (Despite this episode being about a land of fairies, however, the Moonlight Fairies do not show up.)
- No Ending: Although she does eventually finish her story, Pepper cuts it off early on and has no intention on continuing. She just believes that's all there is worth telling.
- Our Goblins Are Different: These goblins look and talk like Vinnie.
- Palette Swap: The goblins are portrayed as Vinnie, except with pointy ears and in different colors.
- Rock of Limitless Water: The Watering Stone.
- Shout-Out: The king in Minka's story looks an awful lot like the King in the Burger King commercials. That he resembles a clown once Minka has thrown food at his face may refer to the King's rival, Ronald McDonald.
- Fairy Minka escapes the Iris Out and flies away much like Tinkerbell.
- Russell's role in the story as a fire spirit taking the shape of a flame with a face brings to mind Calcifer from Howl's Moving Castle.
- The Stoic: The king does not react or even flinch to Minka crashing his dinner or spilling wine on him. The only sign he's not a statue is when he DOES flinch once Minka tosses food at him, but he doesn't budge from his throne, returning to the same expression he had before when Minka finishes.
- This Looks Like a Job for Aquaman: Penny happens to be the only character besides Vinnie skilled in dance, hence making her best suited to pass the goblins' dance test.
- Tongue on the Flagpole: Vinnie got his tongue stuck on a train door and got taken for a ride.
- Unreliable Narrator: Penny, though not in a bad way.
- When All You Have Is a Hammer… / Hammerspace: Penny pulls a twirling ribbon from behind her back and uses it to make her way up the cliffside.
- Wild Mass Guessing: In-universe. After the pets have to go home, Sunil hypothesizes that the goblins did take the Watering Stone and that the wise-mongoose just wanted Penny out of the way.
