After crossing the ocean, Tingle arrives at the gate to Emerald City. The gatekeeper takes his break just as Tingle walks up to his booth, so Scarecrow flashes the medal at him. The gatekeeper opens back up, but Scarecrow is kidnapped by Segare (who was disguised as a clown) and taken out into the desert. Tingle and Lion give chase and immediately pass out from the heat; the Tin Woman drags them to safety and they meet with a nearby survival guide to get a canteen.
The trio set back out into the desert, engaging in random encounters with mummies, cacti, and snake charmers, until they reach the underground village of the Usotami people. The Usotami are all compulsive liars and force Tingle to solve their backwards riddles before he can move further. Tingle discovers the village chief speaking with his daughter, Liar. She accidentally pushes him into a herd of goats and he is trampled, drooling over her despite, until she runs away in horror.
Tingle follows Liar and uses Love Push to win her over. He gains an audience with the chief and learns that Scarecrow was taken into a cave that is home to the Usotami god. Tingle enters the cave with a skin of goat milk (as a sacrifice) and finds his companion tied up. Segare appears and tries to strand them, but he awakens the god and it sends him flying. The god possesses the Tin Woman and forces Tingle to answer a quiz as an Usotami would (if he fails, he's turned into a goat). After passing the quiz, they return to the train and ride into the city.
In Emerald City, Tingle finds that several of the women he's met have also come to attend the Princess's ball. He tries to go straight to the castle, but the guard asks him to wait a day while they prepare and rents him a room at the inn (I may have had to become famous by speaking to a journalist on Page 008 first). The room next to Tingle's is occupied by a man who's spying on the Princess with a telescope; Tingle shamelessly joins him, but when he looks again that night he sees the Princess being poisoned by a mysterious figure.
The city is grim the next day and the ball is cancelled due to the Princess's condition. Tingle meets a blonde-haired woman in the bar (he doesn't recognize her, but she was the one selling the storybook at the beginning) who gives him a list of ingredients he'll need to make an antidote. He uses Balloon Trip to go back and collect the items (note that back on Page 001, Tingle's "parents" are also poisoned), then gives them to the woman. She gives him a pass into the castle and directions to the Princess's quarters.
Tingle meets the woman again outside the bedchambers and she gives him the antidote. He enters and meets the king, then uses the medicine on the Princess to immediate effect. She sees Tingle standing by her bed, drooling over her as he does so, and hides under the sheets in horror. After winning her over with a Love Push, the Princess agrees to reschedule the ball for the next night and invites Tingle to join her. Spying on them from outside, the blonde woman is thrilled.
Tingle awakens the next day to find that the city has been vandalized by pumpkins and the people are terrified of him. He finds Segare and some thugs posing as him and his friends; they beat up the guards and run, leaving the real Tingle to take the fall. Locked in the castle dungeon, Tingle tries to escape by speaking to a lady guard, but she rejects him. He travels to Page 012 and charms her in the bar, then returns to Page 013 and convinces her to let him out. He and his friends decide to sneak into the ball anyway, since Tingle still needs to have his dance.
Segare confronts the quartet in the castle courtyard and attacks them with a mecha. They work together to dismantle it and run for the door, but Segare uses a rocket launcher to knock a massive slab of stone from the castle wall onto them. Lion remembers something from his past, gathers his courage, and catches the rock; he holds it long enough for the others to get inside, then kicks the door shut behind him as Segare prepares another rocket. Tingle and Scarecrow stop to lament, but the Tin Woman presses them on.
The trio sneak past the guards, but several routes are impassable and they're forced to hide in a cellar. They find an elevator up to a tower, but it is short on power. Tingle finds an ill catfish nearby and cures it, then coaxes it to generate the electricity they need. The surge is too strong, however, and causes a wire to pop. The Tin Woman volunteers to stay behind and uses herself as a conduit for the wire. Her systems fried, she flashes on a hologram of her creator before shutting down.
In the tower, Tingle and Scarecrow knock out a guard and end up on a balcony. While Tingle tries to throw a rope across to another tower, Scarecrow comes up with the idea to tie the rope around himself and have Tingle throw him. He catches a ledge and holds on until Tingle can walk across. When Tingle goes to pull him up, he sees the guard trying to follow. Scarecrow lets go and drops, taking the guard with him. Haunted by the loss of his friends, Tingle arrives at the ballroom and is caught, but the Princess sees him and grants him a pardon.
At the Princess's ball, Tingle meets another of Glinda's sisters. He gets a drink, joins in the toast, and the dancing begins. Tingle must find and dance with Iona, Liar, Azusa, and Sensei (he must go back and Love Push with the latter two to dance with them), which means first having a dance-off against the aristocrat from Iona's village to see who should get the privilege. After dancing with all four women, the Princess calls Tingle to the stage. She announces that she will take him as her husband, to Tingle's delight and the king's horror.
Tingle goes in for a kiss despite the king's misgivings, but the Tin Woman drops in front of him (in Morph Ball mode) and declares the Princess an imposter. Lion and Scarecrow, having also survived, arrive with Segare and the real Princess respectively. The imposter reveals herself to be the blonde woman from before, who is actually the wicked Majiyo. She brought Tingle into the storybook so that he would fall in love with the Princess and she could feed off that love; Tingle's friends stand in her way, so she poisons the king and kidnaps the Princess instead.
Lion, the Tin Woman, and Scarecrow chase Majiyo into another dimension; Glinda's sister upgrades Tingle's slingshot before he follows. The four defeat Majiyo in a high-speed battle and rescue the Princess. Segare appears before Tingle can finish Majiyo off, revealing that she is his mother and that he wanted to be with the Princess. They return to the city and cure the king, who offers them a reward: Lion wants courage, the Tin Woman wants a heart, and Scarecrow wants a brain, but the king tells them that they already have those.
Before Tingle can name his reward, he begins to fade. Glinda arrives and tells him that the story is ending without him, then sends him and his companions back to Page 001. Outside the farm, Glinda asks Tingle which of the five women (the Princess and the four from the ball) he will have his last dance with. If he chooses someone that he's not close to, he is sent home by a magic whirlwind and shown dancing wistfully around the storybook after the credits. If he dances with someone he is close to, he can choose to stay instead.
The credits show that the five women have returned to their everyday lives, Majiyo and Segare are banished to the forest, Lion is captain of the Emerald City guard, the Tin Woman builds a memorial to the workers from Page 009, and Scarecrow teaches other scarecrows how to fend off birds with Tingle's slingshot. The final scenes are a picture of Tingle holding the girl he chose after the dance, while his friends cheer for him in the background, and Barkle alone in Tingle's old apartment.