Ghosts of Paradise Estate:
A Ghost appears to the Baby Ponies, but wonâ€™t appear when Megan is around. The ghost turns into a beautiful and mysterious creature, trying to rescue her grandfather. In the process she destroys Paradise Estate. Soon Paradise Estate is partially restored, and the Ponies help the mysterious creature battle Squirk the Evil Octopus. While holding some of the Ponies prisoner, Squirk the Evil Octopus tries flooding all of Dream Valley!
The pretty and delicate Flories enter Ponyland, pursued by the ugly Crabnasties. Posey instantly likes the Flories, not knowing they can hide evil within. Suddenly the Flories become giants and try to destroy Ponyland, while the Ponies and Megan join forces with the Crabnasties. Posey learns that the ugly can sometimes hide the good.