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Planet Fairywood is named for Fairywood, another location in Fairy World. Both are a reference to Hollywood, as well as the restaurant Planet Hollywood and the Las Vegas hotel of the same name. At this location, the Zappy award contest is held.
From the outside, Planet Fairywood appears to be a towering building floating in space. It is orange in color, with a purple dome on the top along with the Planet Fairywood sign. It is also surrounded by clouds and floating search lights. There is a red carpet leading to the entrance.
Inside is an auditorium surrounding a stage with purple curtain, and teal colored columns.
Planet Fairywood is the setting of the Zappy awards in the episode, "The Zappys!". The contest was hosted by Billy Crystal Ball, who was bulled into giving all the awards to Jorgen Von Strangle until Timmy Turner interjected. This location is not seen again, although Fairywood itself is seen in later episodes.