Dream Bunny, a magical rabbit, lives in a whimsical place created by children's hopes, dreams, and wishes; with thousands of sleeping toys nestled in colorful clouds surrounded by rainbows, stars and musical notes. Twinkley, a little star, takes care of this enchanted place with Dream Bunny. One night, Twinkley notices their world is disappearing. To find out why, she decides they must visit children in the real world to see if they are still dreaming. They leave the Place of Dreams and appear in a strange new land, where Dream Bunny has become a real rabbit and can no longer speak. He cries out in his mind, "Twinkley what happened!? This land is cold and snowy! Listen, I hear noisy children!" Twinkley hears Dream Bunny's thoughts, but still convinces him to come along no matter what his mood.

Once at their destination, Twinkley decides to turn him back into a toy; she fastens herself to the end his nightcap. Four year old, Lizzie, discovers them. While sleeping, she enters an unknown land. Lizzie learns from Dream Bunny that she has to tell other children that the Place of Dreams exists, or it will fade away. Once home, Lizzie convinces her two skeptical siblings to embark on an exciting adventure to the unknown kingdom; even when they enter the shadowy areas of the Imagine Nation. It is incredible! Find out what happens, who they meet, and what they discover. . .