Count von Falkenstein sends Alexander to a boarding school. Alexander's horse Maharajah becomes sick while he's gone, and being reunited with Alex is the only cure.
Count von Falkenstein is visited by an old friend who finds delight in three ponies whom the Count deems "ugly". Trying to fix their friendship, Bibi accidentally swaps their bodies.
Bibi, Tina and Alex are getting ready for a big race on a cross-country obstacle course. But Alex's cousin Albert is signed up too and he's really competitive.