In the sequel to Fairy Tale Time the MTT have drifted apart. James, Jeff, and Freddy are the only ones who care for the Magic Transport Machine. Meanwhile in Darkwood, a drastically altered version of Little Red Riding Hood is assisting the villainous Grandma. The thief is sent to Iowa to capture the Magic (even though it's not magic) Transport Team. Some "technical difficulties" send them all into the tale of Robin Hood where they encounter a new friend. After much excitement some unexpected heroes might just save the day...