Daniel's grandfather insists that the story about treasure at the end of a rainbow is only a fairy tale, but when he and Daniel encounter a leprechaun after spending a day looking for the gold, he is not so certain.
Two towns, Tralee and Tralah, compete in an annual St. Patrick's Day decorating contest which Tralah boastfully always wins, but when their hearts are put to the test by a little man with pointed ears, Tralee wins with no effort at all.
When Roy G. Biv, a leprechaun, appears and asks Colleen's help in saving the St. Patrick's Day parade, she offers items of different colors to rebuild his lost rainbow, but is reluctant to part with a special gift from her grandfather.