Louie and Yoko meet The Blue Knight who informs them that The Rainbow Fairy, keeper of all the colors of the world, has been kidnapped by the evil wizard Kroodle. Louie, Yoko and The Blue Knight set out to rescue The Rainbow Fairy. and thanks to the objects and animals that Louie draws with his pencils, the team manages to evade all the traps Kroodle lays in their path.