The movie chronicles the adventures of a young girl named Lily, who sets off to visit her lonely grandpa, Burnett Stone; however, she finds herself on a wacky adventure that leads to a meeting with the world's favourite steam engine: Thomas the Tank Engine! She also meets the magical gold dust using Mr. Conductor, who has since run out of it! The trio become involved in a classic good versus evil story that takes place in the special universe of Mr. Conductor, with one end the Island of Sodor and the other Shining Time (nestled deep in the Indian Valley). Linking these two worlds is the Magic Railroad, a realm truly unknown by anyone.
This harmonious world of magic and innocence is put in danger by greed and cynicism. Enter the two villains: the evil Diesel 10 and the power-hungry P.T. Boomer, the mysterious man from Burnett's past. With the help of a social-outcast teen Patch, stoner/beach bum Mr. Conductor Junior and a host of other colourful characters, will Lily, Thomas and
Mr. Conductor be able to bring the story to a happy end?