Another day at the Whoopsie Daisy Childcare facility in Canby, Oregon and friends Sally and Jody are sharing a cookie and discussing what happened today. It is early evening and the children are sad to say goodbye as the day ends when suddenly they spot a horse roaming free. Not just any horse though, this is a magical horse with a whole rainbow of colors in its coat.
Sally, a bold three year old grabs for the horse's reins, Jody grabs Sally to steady her and offers the beautiful horse a cookie. The magnificent animal seems to nod its thanks and bows low so the children can climb on the saddle which magically appears. Sally pats the horse and says, "We should go to my house, my mom will know what to do with you,"
The horse immediately heads to Sally's house. When they arrive a family friend, Doraleece is there. Jody asks her, "Where should we take this horse?"
Doraleece answers, "Anywhere but MY house!"
Sally's mom suggests they phone animal control where a safe place can be found for the magical horse. The horse is sent off to a Horse Rescue Shelter and offered up for adoption. It is adopted by a friendly troll named Bob. Bob decides to call his new horse Niki. Bob the troll has never ridden a horse, but thinks, "How hard can it be?" He finds out in a hurry. Bob hollers, "LET'S GO!" and Niki takes off running. There is a big ditch ahead; Niki flies over the ditch but Bob is taken by surprise and ends up IN the ditch. Niki stops, he is a compassionate horse, passersby however phone the city animal control (again!) Bob does not want his new horse captured, he climbs back up, gives Niki a light kick on the flank.
Bob thinks he is letting Niki know to calm down, he is actually giving the signal to GALLOP. Niki does just that. Animal control is chasing with a giant horse net. They stop Niki and try to fit the magic horse into a police car; of course it does not work. They call for a horse trailer, Niki and Bob are taken to the huge backyard of Doraleece's dad. Doraleece ends up caring for the colorful horse AND Bob the troll. Sally, Jody and all the children from Whoopsie Daisy Child Care can visit Niki the magical horse whenever they like.