Knight School quests have begun and Warwick worries his fears will hinder the squad. To help the team, Warwick uses Fearless Fairies, which make him immune to fear, but also reckless, putting the squad's quest in jeopardy.
Sorcery School students temporarily move onto the Knight School grounds and quickly engage in a competition for control of the Phoenix squad room. Arc and Ciara must decide how far they'll go to win and save their school.
The Phoenix Squad appeals to Sir Gareth in an effort to expel Sage from Knight School, but his meeting with Sage's mother backfires after he falls in love at first sight and follows her command to immediately make Sage a knight.
On the eve of Ciara's sister's return from the battlefield, Sir Gareth binds the feuding Arc and Ciara with magical friendship bracelets. The bracelets can only be released by demonstrating sincere kindness between Arc and Ciara.