The Parent Talent Show is being hosted at Dimmsdale Elementary School, and Timmy's dad is about to take the stage. As his father fumbles onto the stage and begins to make a fool of himself in front of the entire school, Timmy quickly wishes that his father had a Magic Hat. With the help of the fairies' magic, Mr. Turner's act becomes a hit, and both he and Timmy are carried out of the school by a celebratory crowd. Meanwhile, Mr. Crocker, the host of the talent show, begins to suspect that fairies might be involved, and that Mr. Turner might himself be a fairy.
Back at the Turner's house, Timmy and his family celebrate the successful magic act. Mrs. Turner offers to cook her husband his favorite meal, steak; so Mr. Turner pulls out a full grown bull from his magic hat which begins to chase Mrs. Turner around the kitchen. While his parents are distracted, Wanda warns Timmy that magic is dangerous in the wrong hands. Just then, the doorbell rings, and Denzel Crocker appears at the doorstep disguised as "Denzel DiCaprio, Hollywood Agent and Not a Fifth Grade Teacher". Mr. Turner is swayed by "DiCaprio"'s promises of fame, but Timmy is not fooled by the disguise and refuses to go on tour... until he is told he can miss school.
The Turner family and Crocker go on tour to real life cities such as Hoboken, St. Louis, Chicago, New York, Las Vegas, Miami, and finally, Hollywood, with Mr. Turner performing different acts with his magic hat and rabbits. Meanwhile, Crocker plots with a reluctant Bucky, the Talking Rabbit, one of the rabbits from Mr. Turner's act who can talk. Crocker wants to find a way to expose Mr. Turner as a fairy on National Television after landing a deal with the television company.
While backstage in the National Television studio, Mr. Turner tells Crocker that he has changed his name to "Dadbra-Cadabra, Brain Freak". While Mr. Turner figures out his first trick, learning to walk in his new ultra-tight jeans, Mr. Crocker goes to set up cameras to expose Mr. Turner for being a fairy. While talking to his family, Mr. Turner tosses out his magic hat and reveals his new act will feature a death-defying escape act. As he goes off to perform his act, Timmy does not seem bothered by this. After Wanda explains that Timmy's dad is powerless without the magic hat, Timmy easily fixes the situation with an unspecific wish which Cosmo grants.
Mr. Turner begins his act as his wife locks him into a chest on a conveyor belt, which starts to approach some buzzing saws. Near the stage, Crocker explains his plot to Bucky, who is to ride on a unicycle after the act and rip off Mr. Turner's short, exposing his fairy wings and proving the existence of fairies to the world. Timmy overhears Crocker's idiotic plot and laughs it off, until Cosmo reveals that he had turned Mr. Turner completely into fairy as part of Timmy's earlier wish. Timmy and Wanda yell at Cosmo, but before he can change Mr. Turner back, Timmy tackles Cosmo and says that it is too late to reverse the wish as his father will be cut to pieces. Timmy has another solution.
Everyone nervously watches as the chest containing Mr. Turner hits the saws, disintegrating it completely into sawdust. However, from the dust, Mr. Turner reforms and springs out yelling "Brain freak!", being that as he was a fairy he could not be killed. As Crocker springs his plan into action and kicks Bucky out onto stage, Timmy quickly wishes that his father was no longer a fairy and that Crocker was. Bucky rips off Mr. Turner's shirt as Crocker rushes onto the stage, but to his surprise their are no wings on Mr. Turner... instead, a pair of wings spring out from Crocker's shirt. Timmy jumps in front of Crocker and reveals to the crowd that he is a fairy. The crowd forms a mob that begins to chase Crocker, either to grant his wishes, capture him and sell him to government scientists, or simply force him to put his shirt back on.
Timmy hugs his father, who explains to him that he is done with show business, mainly because the tight jeans were cutting off circulation to his brain. Crocker joyfully flies among the clouds in the moonlight, happy that nothing can hurt him now that he has magic. Just then, from in his bedroom, Timmy undoes the wish to make Crocker a fairy, causing him to fall from the sky and land in the trash barrels outside Timmy's house.