Fairy Idol is the thirty-second episode of Season 5, it is the fourth television movie and the second involving music, although it is not a musical.
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. And there is another big problem: Norm is a participant.
Tired of his life in the lamp, Norm the Genie finds a way out of the lamp when discovered in Da Rules that if a God Parent quits, the position is open to any magical creature which he plans to trick Cosmo and Wanda to quitting their job as a way of getting revenge on Timmy Turner. So after using his last master, The Mayor of Dimmsdale to wish everything he wished back to normal (as he was about to be beheaded by a guillotine by Chompy) and have Norm's lamp transferred to Timmy's friend Chester McBadbat, Norm then uses Chester to make the first wish to spend more time with Timmy. At Timmy's place, it is shown that Timmy is taking advantage of his fairies and making unnecessary wishes such as making his bed and getting him dressed up. Norm appears as Timmy and his godparents prepare themselves. Norm wins the trust of Cosmo and Wanda by giving Wanda a giant hunky man chocolate bar and Cosmo a small piece of string. Norm takes Timmy outside to discuss about Chester's wish to spend more time with him, though Timmy doesn't trust Norm for the obvious reason. Then Norm shows Timmy a clone that would keep Cosmo and Wanda busy and go to school for him while the real Timmy plays with Chester. Unknown to Timmy, while he had fun with Chester, Norm made the Timmy clone to act selfish and unappreciative to manipulate Cosmo and Wanda. Finally, when Cosmo and Wanda had enough of the abuse, they quit their jobs. Timmy was too late to stop them as Norm later appeared admitting he was behind the whole thing just before Jorgen came in to wipe Timmy's memories of his godparents. However, Timmy managed to have Jorgen wipe the memories of the clone.
Believing Timmy's memory is gone, a singing contest is held in Fairy World to determine who gets to replace Cosmo and Wanda as godparents and Norm is already preparing for his plan to work as he plans to enter the competition. Before he does, he tricks Chester into making his second wish in order to keep him occupied by wishing Chester's father was the most successful baseball player ever. In turn, moved Chester's family from the trailer park to a big mansion with lots of wealth, and most noticeable, his dad, Bucky McBadbat is much more muscular and no longer wears his trademark paper bag in shame. Meanwhile, Timmy was determined to try and make it up to his godparents and get them to comeback, his only problem at the time was how to get to Fairy World. Fortunately, it was revealed that Denzel Crocker just finished constructing a portal to Fairy World in his Crocker Cave that can take him there. Just before he could, Timmy knocks him out with sleeping gas, takes some fairy hunting tools with him and uses the portal, taking him to Fairy World.
In the meantime, the singing competition dubbed "Fairy Idol" was taking place. The judges of the competition included Simon Sparklefield, Blonda Fairywinkle and Binky Abdul. Some of the contestants who performed included a fairy version of William Hung that sang a very badly sung version of The Fairly Odd Parents Theme Song causing the shocked and digusted judges to vomit. The Wicked Witch of the East about to sing "Somewhere over the Rainbow" before being crushed by a falling house. The Tooth Fairy sang a high pitched version of My Shiny Teeth and Me that attracted fans consisting of Dolphins, and the Lawn Gnomes performed the rap, Not Pixies, which is the opposite of the song Da Pixie Rap. Back on earth, Chester was growing more miserable as due to now being the son of a rich and famous baseball player, he can't spend anytime with his dad. Despite that he really does want to spend time with his own son, Bucky McBadbat was always taken away by roaring fans and against his will. Except for when it came to groupies of beautiful women. To occupy himself, he is forced to learn how to play the banjo, which he greatly despises.
At Fairy Idol, the remaining contestants were revealed to be The April Fool, Juandissimo Magnifico, Cupid, the pixie Sanderson, Norm the Genie, and Cosmo and Wanda themselves. After The April Fool only sang one line from the song Emotions, he was sent flying out and knocked out the security guard in the process, giving Timmy a chance to sneak backstage. He then gets caught by the guards inside and they ask him if he has a hall pass. Timmy says no and then they ask him if he has a stupid crown. Timmy notes he has a pink hat on him. One guard notes that while the hat is stupid, it's not "fairy" stupid, so they take him away and lock him up into a cage. The guards then tells him he will later have a violent chat with Jorgen before they leave. Timmy realizes he has to get out because if Jorgen finds him here then he will know he did not wipe his memory and Timmy will not get a chance to apologize to Cosmo and Wanda. Timmy manages to escape and disguises himself as Denzel Crocker so nobody would spot him as his original person (Since the guards forgot to take away Timmy's backpack). After Juandissimo sang I'm Too Sexy For My Sexy, Cupid singing I Can't Live Without Love and Sanderson singing I'm Sanderson (Singing voice done by guest voice Method Man), Timmy catches Cosmo and Wanda in a Fairy Net and reveals himself to them. Timmy told his former fairies everything that happened because of Norm, they believed him but because of his abusive behaviour before Norm's interference, they refused to forgive him but Cosmo gave in after being offered an apology cookie. Back on earth, Chester's new home was in such bad shape after the party and because of spending so much money, they are once again broke as the repo men took away their house, leaving them homeless.
Soon then, Norm is next on stage as he sings his signature song in the special, "Gimme the Wand" and already has been shown to be a tough competitor to beat. Cosmo and Wanda prepare, however, it was revealed by Jorgen that they cannot go together and only one of them can perform. So Cosmo quickly watched a video on how to sing like Diana DeGarmo (guest voice who performs as Cosmo's singing voice) and takes the stage alongside Norm in a duet battle during the same song being performed. After the song was finished, Jorgen revealed that Sanderson, Cupid and Juandissimo did not win Fairy Idol. Jorgen then reveals the winner to actually be Cosmo and Wanda. However, Norm anticipated it happening as he created a back up plan. First he distracted Jorgen with a piece of rope (in a similar manner of how Cosmo was playing with the string), trapped Cosmo and Wanda in a butterfly net preventing them from using their magic, then finally, brought in a wrecking ball that swung towards Cosmo and Wanda at great speed. And because of them being trapped in a butterfly net, they were hit hard by the wrecking ball, nearly killed, and due to their great injury, they were disqualified from the competition, leaving Norm the runner up, winner of Fairy Idol and the newest Fairy God Parent, therefore freeing him from his lamp.
Afterwards, it is revealed that Norm's new godchild is actually once again, Chester McBadbat as shown his father then being taken away by the repo men, leaving him and his father less, homeless, and actually knowing how to play the banjo. The banjo is actually what clinched it for Norm to be Chester's God parent. So now having Norm as his fairy, Chester wishes for his life to go back to normal, his family living at the trailer park and his father being despised again by the public, making his life happy again. Norm then gives Chester a buzzer just in case if Chester needed him for anything so Norm can finally enjoy his freedom away from the lamp. However, Chester felt that he should be using his new abilities for the good of the planet so he keeps constantly using the buzzer to summon Norm, much to Norm's dismay as he constantly grants Chester wishes to which Chester believed, will help everyone. Such as bringing rain to the Sahara Desert, making the North Pole warmer, and giving the scientists, including his friend A.J. long flowing hair for their bald heads.
In the Fairy World hospital, Timmy is shown to be crying, mourning the tragic incident with his fairies as he blames himself for what happened that if he wasn't so selfish and lazy, Cosmo and Wanda wouldn't have been hurt. Then, what he believed to be his fairies being healed by his tears of sadness, rather, fairy dust remained from the bandages, appearing that Cosmo and Wanda are dead. Timmy cried even more. However, it was just a little trick to see if Timmy really meant what he said. Convinced, Wanda then forgives him. However, when Timmy begins to celebrate on this, Wanda reminds him that she and Cosmo quitted being godparents. Timmy depressed decides to go back home the long way on the rainbow bridge. Cosmo and Wanda decide to spend their last time with Timmy by walking him back home before they have to go away forever.
Believing he made the world a better place, Chester realized that he made the world worse as floods were created in the Sahara desert making it a dangerous mud pit, the polar ice caps are melting, and even though the scientists were happy, they decided to go get girls because of their new hair, therefore, not helping the world with its problems. Chester then notices Timmy walking home crying. Wanting to help cheer up his best friend, he brings in Norm again who grows to get more annoyed with his private time being taken away by Chester. Chester proposes that he'd make Norm Timmy's godparent out of selfless kindness, however, it gave Norm another idea to break away from the responsibilities of a god parent and use Timmy to do so. As Norm proposed a deal to Timmy, Timmy countered it by telling Norm that he has to grant wishes or else he'll get magical build up and explode from not granting wishes. Norm believes Timmy was bluffing and doesn't believe him, a week later, as predicted, he gets the build up and explodes while talking to two genie girls. Timmy and his fairies get Norm back to Timmy's house and makes a deal to him to make everything back to normal and make Cosmo and Wanda his fairies again. However, Norm double crosses them as he announces out loud that he quits as a god parent. This brings in Jorgen once more, this time, successfully erasing Timmy's memory and in the process, and then removes Norm's fairy wings and crown turning him back into a genie. Even though Norm's unhappy being bound to the lamp again, he is happy that he got his revenge on Timmy and that he got Cosmo and Wanda jobless, believing he still won in the end. However, Chester suddenly appeared out of Timmy's closet, having heard everything about how Norm used him to hurt his best friend and is furious that he lied and tricked him like this. Chester then reminds Norm that he still has one genie wish left. The third wish which is the very wish that will suck Norm back into his lamp. He then uses is to wish everything back to the way it was before he found the lamp. Norm grants Chester's wish, fixes the world's problems, makes the scientists and A.J. bald once more much to their disappointment and restores Timmy's and the fairies' memories as Norm is trapped in the lamp once more.
Forgetting everything that has happened, Jorgen finds Norm's lamp and plans to use it as a urinal cake. Timmy once again has Cosmo and Wanda as his god parents but this time, treats them with respect again as he takes care of himself with his own needs. Afterwards, he gives Cosmo and Wanda the day off as he spends time with Chester. While Cosmo and Wanda are happy for having a day off, Wanda grows concerned that they might get magic build up during then. Cosmo doesn't believe it, but then 24 hours later, they explode from magical build up. To which Cosmo excitedly replies as the last line of the special, "Look! I'm made of string! Yay!", ending the episode.