After wishing for a challenging virtual reality game, Timmy goes to the bathroom and leaves it unattended, and Chester and AJ decide to play. Realizing what has happened, Timmy must go into the game and play to save them.

Cosmo and Wanda shrink Timmy so he can complete his assignment on the microscopic universe but problems ensue when Cosmo and Wanda, who have also shrunk themselves, get eaten by Vicky. Timmy must now go inside Vicky to save his godparents but stirs up a lot of trouble in the process. To make matters worse, Vicky plans on tearing apart the house and blaming it all on Timmy to his parents.

When Timmy feels sorry for the town's caged, prize goat, Chompy, and wishes he could be free, the goat disappears and Vicky gets blamed for goat-napping.

In this special Christmas episode, Timmy wishes everyday was Christmas! Then, the other holidays get mad at him, and decide to banish Santa to February 33, which doesn't exsist. Timmy stops them before he gets banished.

Thanks to all the stuff he's gotten from his fairies, Timmy's parents suspect that he's a shoplifter. On the same day, Cosmo and Wanda have an inspection day with Jorgen Von Strangle. Timmy must prove his innocence while his godparents prove their competence or they'll never see each other again.

Timmy's got a break from Vicky; unfortunately, he's being babysat by Dad's Dad, Pappy. However Pappy doesn't like any of Timmy's modern entertainment.

Timmy returns to Retroville, but this time he takes Cosmo and Wanda with him. He and Jimmy fight over who gets to take Cindy to the Friday the 13th dance. Jimmy then returns to Dimmsdale as he takes Carl, Cindy, Sheen, and Libby with him. Meanwhile in Fairy World, the Antifairies escape from their prison again.

Norm the Genie returns and tricks Cosmo and Wanda into disliking Timmy by replacing him with a selfish, unappreciative clone version. When Cosmo and Wanda quit, a singing contest is held in Fairy World to determine who gets to replace Timmy's godparents.