Spyro, Sparx, Hunter and Bianca are taking a vacation in Dragon Shores. A message tied to a balloon appears and they read it. The message is from Zoe saying that Fairy World is in trouble. As they were on their way to Fairy World, Bianca realized that she left her spell book at the Dragon Realms library.
Meanwhile, Grendor the rhynoc librarian found Bianca's spell book and casted a spell on himself. The magic backfired and gave Grendor two heads and a headache. So he kidnaps all 100 fairies including Zoe and traps them in ice crystals hoping that they would cure his headache.
Spyro must rescue all 100 fairies and defeat the rhynocs that have taken over Fairy World. With the help of Bianca's magic (she managed to find her spell book), Spyro makes his way to Grendor's lair where he defeats Grendor and rescues Zoe. Grendor was worried that he will never lose his extra head or headache then Zoe tells him that he could have asked her to reverse the spell all along. With the help of Zoe's magic, Grendor's headache and 2nd head disappears.
With Fairy World safe, Spyro and friends return to Dragon Shores for another vacation.