On the night of a full moon, the fairies ruled by Queen Lulea are dancing in the Forest of Burzee. Lulea calls a halt to it, for "one may grow weary even of merrymaking". To divert themselves, another fairy recommends that they make something they can imbue with fairy magic. After several ideas are considered and rejected, the fairies decide to make a magic cloak that can grant its wearer one wish. The fairy who proposed it, Espa, and Queen Lulea agree that such a cloak will benefit mortals greatly. However, its wish-granting power cannot be used if the cloak is stolen from its previous wearer. After the fairies finish the golden cloak, Ereol arrives from the kingdom of Noland whose king has just died. On the advice of the Man in the Moon, Ereol is dispatched to Noland to give the magic cloak to the first unhappy person she meets.