The story follows Sugarlump, a rocking horse who dreams of exploring the world beyond the nursery. His wish is granted by a magical unicorn with a silver horn and sparkling blue eyes, who transforms him into a real horse. Sugarlump embarks on various adventures, including galloping around a racetrack and dancing at the circus. However, he soon realizes that the excitement of his new life isn't as fulfilling as he had imagined, and he longs to return to the children he left behind. Luckily, the unicorn has one more wish to grant.