James Chandler, president of Happyland moves back to the theme park with his family in tow. Lucy is on a quest to get away from the park's manufactured happiness and be part of something real. Elena reveals a secret to Lucy.

Lucy and Ian must pass character training together to continue getting paid, and with a looming eviction Lucy is highly motivated Ian however is not.

During the Fourth of July parade in Happyland, a natural disaster is a hindrance to the festivities, forcing people to go underground.