Penelope realises that she cannot stop Bruce and Diana's love so the three of them must figure out what they are going to do.
Otto has become King of England. No, it's not a joke - he has the opal.Diana, Darlene and Mossop have been imprisoned and Bubbles has formed a Robin Hood style rebellion while Penelope becomes a secret agent.
When Diana enters the family into a C&W concert, Pen is overcome with stage fright. Meanwhile she needs the opal and Mossop has it.
When the indigenous Yapindchit people claim the opal is theres a vicious battle ensues between Pen, the aboriginals, Otto and Darlene. The case ends up going to court under Judge Smythe
Pen would really love a boyfriend and the gorgeous Montgomery St. Ives is her type. So, without Bruce's help Pen gets the guy and shows off to Sophie and Marcia. Unfortunately he turns out to be not her type at all.
Diana and Nigel are planning to elope and Penelope has become a baby again so noone can understand her wishes. Miss Mossop and Bruce decide to ruin the wedding plans.
When Pen wishes for everyone to tell the truth, surprising secrets come out. But when Bubbles gets the opal, his wish makes everyone lose their clothes and only Penelope can put things back the way they came
After a bad wish of Penelope's, the master of the past is called to right things. But the past and future may have been changed in the attempt
Conrad has trained a parrot to get the opal and he becomes controller. But Penelope is desperate to get her opal back and forms a pact with Bruce.