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. Without the complete cloak, Bud can't wish the Roly-Rogues away. Queen Zixi uses the contents of a Silver Vial mixed in with their soup to defeat the Roly-Rogues. They're put to sleep for ten hours in which time Zixi and her army tie the tucked-in creatures up (when they sleep or roll, the Roly-Rogues retract their heads, arms, and feet) and send them all bobbing in the river on the Ix side of the mountain range. King Bud and his allies retake Nole, and the lands of Noland and Ix declare lasting friendship between them. Later that year, the sailor whose necktie had the last piece of the magic cloak returns home and presents a necktie similar in appearance to King Bud, for he'd lost the other one at sea. Enraged, King Bud is about to have the sailor and his mother put in prison, when Queen Lulea of the fairies appears to take the cloak away because it has caused so much trouble. She undoes the foolish wishes that the cloak granted, allowing the wiser ones to remain, and graciously allows Bud to use the cloak for one last wish: "that I may become the best king that Noland has ever had!" Lulea will not grant Zixi's wish to see her own beauty, because the fairies do not approve of those who practice witchcraft. Queen Zixi returns to her kingdom, to rule it with kindness and justice—but, with her wish unfilfilled, must always beware of a mirror.