The peaceful daily life of Tayo and the little buses are caught up in the battle of wizards and accidentally absorb the Stone of the Sun that evil wizards are trying to get. Evil wizards capture Rogi, Lani and Gani to take away the Stone of the Sun, but Tayo barely escapes from danger thanks to Karly's help. Tayo heads to the magical world with Karly and Bud to save his friends.

Tayo, who goes to the magical world to save his little bus friends, arrives at the magic school by turning into a suitcase by Karly. But Luna, the troublemaking little wizard, takes Tayo suitcase by mistake and goes out to the magical city. Luna, who is looking for her new magic car mate, encounters the evil wizards who are looking for Tayo, and Tayo is in danger of being caught by them.

Tayo, who takes his first magic lesson as Luna's magic car mate, is upset that he is not good at floating magic. However, motivated by rivals Prody and Melody, Tayo and Luna try to make up for their mistake in flight practice. But they ruin the practice because of jealousy Prody's magic prank.

After experiencing a near-crashing accident in flight lesson, Tayo is afraid of flying magic. However, Tayo and Luna, who are given a mission to find coins to participate in the magic contest, search whole school but cannot find coins anywhere. Luna insists on using flying magic, saying she is sure that the coin is on the top of the roof. But Tayo confesses that he is afraid of flying magic.

Tayo and Luna get to participate in a magic contest, and they are eager to win and receive a pendant because it has power to save their friends. Tayo and Luna, who face difficulties from the first gateway, "The Maze Escape", pass through the gate safely with perfect harmony between the two despite the disturbance of various obstacles.

Finally reaching the final gate of the magic contest, Tayo and Luna have a final match with Prody and Melody. Under a mission to take the magic pendant away from the two-headed dragon, Tayo and Luna are in hurry to escape. Meanwhile, Prody and Melody approaches the pendant as if they know all the weaknesses of the dragon but are in danger by unexpected attack by the dragon.

D.O, who shows up in the magic school, absorbs the Stone of the Moon that is handed over from Gray and gets to have stronger magical power. Tayo and Luna, who escape from D.O's attack, decide to rescue the little buses to confront D.O. They transform into evil wizard and magic car and sneak into D.O's castle.

After rescuing the little buses and returning to the magic city, Tayo and Luna hear that D.O, who took the Stone of the Moon, dominates the magical world and Karly and magical students are captured. Little buses and Luna use various magic to beat evil wizards and magic cars and finally rescue the magical students. But D.O. soon catch them and even worse, the Stone of the Sun is also taken away.

As D.O's mask is taken off by Karly's spell, Karly realizes that D.O. is her old student, 'Dominic'. D.O. tells the story of his past being abused by Karly at the magic school and tells her that he has become a evil wizard because of her. Karly insists that she didn't mean it, but D.O, mind full of revenge, attacks Karly.

With D.O's mean trick, Luna is put in a danger and the magical world is facing danger again. At that time, the little buses and the good wizards arrive and eventually succeed in defeating D.O.. Both the Stone of the Sun and the Stone of the Moon, which D.O. had seized, get back to their original place, and finally both the human and the magical world regain peace.