Bruce has to tell Diana he is a genie, it will clear his mind so he can propose. However, Diana has the opal. So when Bruce asks the question, she wishes the moment will last forever, well from there. . .
While Diana has forgotten about Bruce's proposal, love is blossoming. Determined to see if the love is real, Penelope makes Bruce human for a day with surprising consequences. Now, however, Baz is her slave.
When Pen wishes for everyone to tell the truth, surprising secrets come out. But when Bubbles gets the opal, his wish makes everyone lose their clothes and only Penelope can put things back the way they came.
Diana and Nigel are planning to elope and Penelope has become a baby again so no-one can understand her wishes. Miss Mossop and Bruce decide to ruin the wedding plans.
Bruce discovers Nigel is a fraud and must convince Penelope to call off the wedding. Only trouble is, Pen's created a double of herself and everyone is confused.
Pen would really love a boyfriend and the gorgeous Montgomery St. Ives is her type. So, without Bruce's help Pen gets the guy and shows off to Sophie and Marcia. Unfortunately he turns out to be not her type at all.
When the indigenous Yapindchit people claim the opal is theirs, a vicious battle ensues between Pen, the aboriginals, Otto and Darlene. The case ends up going to court under Judge Smythe.
Otto has become King of England. No, it's not a joke - he has the opal.Diana, Darlene and Mossop have been imprisoned and Bubbles has formed a Robin Hood style rebellion while Penelope becomes a secret agent.