Welcomed by Queen Zixi, who confesses that she stole the real magic cloak, Princess Fluff promises that she will let her use it after the Roly-Rogues are defeated. When they arrive where Zixi had left the cloak in the forest, it's gone and the party mounts a search to find it. Along the way, Zixi notes that the alligator, owl, and girl have become satisfied with who each of them are. The cloak was found by Edi, a shepherd who took it to Dame Dingle, a local seamstress. The seamstress reveals that she cut the cloak in half, used one half, and gave the other away. Zixi, Bud, Fluff, Rivette, Tallydab, and Ruffles track down the remaining pieces of the cloak, but one of them cannot be retrieved because the woman who had it sewed it into a necktie for her seaman son, and he won't be back home for a year.