Mr. Smee, Sharky and Bones are singing because there is a big rainbow in the sky. Captain Hook comes out of his room where he was sleeping and tells them to stop but Sharky tells him that there be treasure at the end of the rainbow so Hook follows the rainbow because he wants the treasure. On Pirate Island the Pirate Princess sails to shore on her Golden Ship. She explains that her Rainbow Wand ran out of colors and the only way to get them back is to touch the wand to the Dazzle Diamond at the end of the Never Rainbow. So the crew follows the rainbow to the Diamond. Soon they find the Diamond but Captain Hook steels it and starts running away with it but Jake tells Izzy to sprinkle him with Pixie Dust and tells the Pirate Princess to give him the Wand. He flys up and taps the Wand on the Diamond. Captain Hook doesn't care as long as he has the Diamond but right after Jake touches it the Diamond it disappears. The crew returns back to Pirate Island and the Princess goes back to Pirate Princess Island.