n the mines, eight dwarf eggs near their hatching hour. From high above the clouds, a fairy named Nova accidentally spills some precious fairy dust, which ends up being absorbed by one of the dwarf eggs. This particular dwarf dreams of Nova, and hatches earlier than his seven other brothers. He is instructed by the head dwarf, Bossy, his purpose in the mines. The dwarf inquiries about the beautiful woman he saw in his dream, but Bossy huffs that there is no such thing as female dwarves. Once all eight dwarves are cleaned up, they are handed their own special pickax, which materializes with each of their own personal names. The dwarf who hatched early receives the name Dreamy. Afterwards, they all head into the mines to start their jobs of mining for diamonds and crushing them into fairy dust for the fairies. A year later, Dreamy has become accustomed to daily work in the mines. He saves Nova from trouble by helping her turn off the fairy dust machine when the switch jams. In relief, Nova thanks him, while Dreamy is agape as he recognizes her as the same woman in his dream. They chat for a bit, but trouble brews when Nova sets down her bag and it gets scooped up into the assembly line headed for the furnace. After a few paralyzing seconds, Dreamy climbs up; managing to grab the bag before it is incinerated. Nova is deeply grateful for his help while disappointed in her own clumsiness as she wishes to become a fairy godmother. Dreamy thinks she will make a great one, which makes her smile. She introduces herself to him and casually invites him to Firefly Hill to see the fireflies with her at night, but he fails to get the subtle hint, and she leaves, disheartened.
That night, Dreamy, in a distracted mood, is out at the tavern with his brothers, but can't shake how strange he feels. Bossy insists that dwarves don't get ill, but a human woman named Belle can tell he is lovesick. Dreamy questions her about love and mentions Nova's stop at Firefly Hill. Belle laughs at his naivety and points out Nova obviously invited him to go there with her. Excitedly, Dreamy hurries off. At the top of Firefly Hill, he finds Nova waiting for him. While there, the two bond over their similarities while quickly falling in love and make plans to travel the world together on a boat. ("Dreamy")
Soon after, he meets up with Belle again at the tavern to notify her of his plans to run away with Nova. Nearby, a discussion goes on between some men about a quest to slay a Yaoguai in a far off land. Dreamy thinks it'd be a good Dreamy thinks it's the perfect opportunity for Belle to have a real adventure. Belle is more unsure since the only adventures she has experienced are the ones in books, which all have happy endings. With his encouragement, she decides to go. As a parting gift, Dreamy gives her a pouch of fairy dust. ("The Outsider")
The next night, Dreamy packs his bag to leave with Nova when Stealthy, one of his brothers, stops him. One by one, all of the other seven dwarves wake up and ask him where he is going. Dreamy explains his love for Nova and the plans they've made together, and all his brothers, except Stealthy, wish him luck. Halfway to Firefly Hill, Dreamy is stopped by the Blue Fairy and Bossy. They point out dwarves cannot fall in love, and furthermore, Nova's deepest wish is to become a fairy godmother, which can't happen if the two of them leave. The Blue Fairy says the two of them would accomplish great things alone, but they would make a disastrous couple. They give him a choice—ruin both of their lives, or make Nova happy. Resignedly, Dreamy approaches an expectant Nova at Firefly Hill. Excitedly, she conjures a spyglass to allow him to see a docked ship they will be using for their travels. He breaks the change of plans to her; citing that they do not belong together and should stick to their own kind. He doesn't understand what makes the both of them so special, to which she says it's their love for each other that does. Still, Dreamy says their dream should be put aside. Becoming desperate, Nova professes her love for him, but Dreamy tearfully says he can't love. Pained, he walks away and returns to the mines. Unhappily, Dreamy asks for his ax, which completely breaks as he furiously attempts to chip jewels out of a rock. Bossy supplies him with a new ax, which gives Dreamy the new name Grumpy. ("Dreamy")