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Episode 51  The Quest of the Princess Ponies (Part 1) Aired:
September 7, 1987
We find a group of ponies with wings and wands putting up some kind of wall when one of them makes a cry of distress. Her hoof is chipped but not all of them feel bad for her. However, the white pony notes that it's the yellow one's fault because the polish was used and doesn't seem to be working. Regardless, the group get into an argument over which of them is better and what it takes to be queen. Another pony comes over to see the commotion and is perplexed at the story she's given.

Meanwhile, Spike is tired from all the walking and they're no closer to Dream Valley. Worse still, none of the accompanying Bushwoolies can decide the right way but all of them see a light hit them. They follow the source and end up at the Royal Paradice, where only royalty lives and meet the blue pony from before, revealed as Princess Royal Blue and a gurardian of the magic wands. Spike and crew aren't sure what to make of it  but other members insist it's a true story and asks Spike and the others to judge their contest.
The contest is about which of them will be queen and they use a song to show what they're capable of. Even when the song is over, none of them can decide which of them should be queen so Spike suggests letting the Bushwoolies decide. However, we're viewing this from the lair of a molten creature that calls upon his servent Sludge to help get the magic wands. While they get prepared, the would-be queens argue and Spike recalls the legend of the princess ponies Paradise told about earlier.

Spike and the Bushwoolies never thought the princess ponies would act as they are but things are interrupted as our lava being erupts from underground and makes a lava tidal wave. The princess ponies realize it's Lavan, ruler of the lava demons but cannot escape without Lavan obtaining more wands. The white princess pony still has her's and takes Princess Royal Blue's wand to fly out of Lavan's reach. Lavan isn't worried and uses his powers to send the white pony spinning out of control long enough to get the last two wands.
Spike doesn't like it and tries a little fire in protest but it's no use as Lavan and Sludge disappear. The princesses fear what Lavan and SLudge will do but those two are already preparing for Lavan's new transformation using the magic wands' powers. Sludge wants to use a wand for beauty but Lavan notes that only power matters and shoves Sludge aside before beginning his transformation. However, it's not going to plan as Lavan is forced on his back while the wands crystallize the landscape above.

Megan, Fizzy, and Galaxy watch with wonder until Fizzy's magic acts on its own, sending Fizzy into a barrel. Galaxy senses that whatever is going on isn't good and ends up turning down the heat with her own magic. Unaffected by the mess, Paradise goes to check out the problem while Lavan orders Sludge to get ready as they're going to capture the princess ponies to learn how the wands work. Meanwhile, the princess ponies watch and realize Ponyland's magic is breaking down. Spike knows someone must get Megan and orders the white princess pony to go but Lavan and Sludge are already there. As Lavan surrounds them in his approach, Spike hands the white princess pony a Bushwoolie to show her the way and the duo take off. Lavan has arrived and will make them all his prisoners!