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Movie My Little Pony: The Movie (Part 3) Released:
June 20, 1986
As the song progresses, Mr. Moochick adds options for places to live but none of them can compare to Dream Castle, leaving him out of ideas until his rabbit friend shares exactly what they want. With that, the ponies have a new home, Paradise Estate. They still need to figure out how to stop the Smooze and it may even be impossible until the rabbit reminds him of the Flutter Ponies and a map to find them. He sends them off with Paradise Estate but ends up confused as to whether he gave them the right information.
Meanwhile, Spike and Lickety Split have begun venturing the other way and find a tunnel that leads to a mystyerious home of what turns out to be Grundleland as the Grundles appear and use a song to assure they're friendly. They're all that remains of what used to be Grundleland and they all miss the area so much bringing it up is a rarity. Lickety Split wants to know what Smooze is but the Grundles first show them a way out and point out the Smoze that lays before them. Upset that the witches have done their devious deed again, the Grundles decidewalk with Spike back to Dream Castle.
Elsewhere, the witches present the Smooze with the phlume but the Smooze shows no interest in it right away. Once it ingests the substance, the Smooze is revived and stronger than ever, leaving the three witches to scurry back to their house to watch. Back where Dream Castle once stood, while most of the Bushwoolies play in the pool, the ponies decide on what the rooms will become. However, North Star sees the Smooze coming and notifies them. Molly and Danny want to come this time and Megan eventually allows as there's no time for arguing.
At their house, in spite of seeing the ponies running away, Hydia orders them to get Augh. On the solid Smooze ground, Shady isn't so confident they'll find Spike and Lickety Split but with her Bushwoolie accomplice agreeing all the time, she regains some confidence to keep looking. Inside their cave, Reeka and Draggle are moving towards Augh's lair with food and Reeka nearly falls in after declaring she's through doing orders after this.
Sure enough, Augh is ready and waiting but won't help and snatches the food they prepared for him, leaving the duo uncertain as to whether the food is enough to change its mind. Shady and the Bushwoolie have picked a spot to share their sorrows and as much as Shady doesn't want the Bushwoolie to agree with everything she says, it's what they do. The Bushwoolie uses the approaching Smooze to speak for itself and gets Shady to run away with it.
Megan and her group have been going the right way and find the giant sunflowers. Since they're so tall, Wind Whistler agrees to help out by flying overhead to lead the way. They reach the halfway point when the Smooze arrives and they have to escape. Megan trips and finds herself stuck behind the new Smooze river. Unaware of her predicament, the rest find themselves in a similar peril until Magic Star and Fizzy find a way to get across.  While Wind Whistler, Danny and Molly find Megan before Megan makes a last ditch effort to escape using the giant sunflower.
Megan flies through the air and barely manages to catch the cliff's edge. However, Megan cannot hold on and falls but Wind Whistler saves her in the knick of time. Just when it looks like there's more Smooze coming, it's actually a Bushwoolie that Shady is accompanying with and they'll need all the luck they can get with Flutter Valley being in Shadow Forest according to their map. Spike, Lickety Split and the Grundles have no luck finding Dream Castle but do find Smooze and scurry to get away. They jump into a river with a log just in time.
However, Spike's tail has a bit of Smooze on it so Spike decides to try and steer but with a waterfall up ahead, it's no use. They go over the falls and find more Smooze so Spike orders them to the right to head for shore. It works and they're on dry land again with a nearby well. Lickety Split decides to go to it knowing everything that's happend so far is her fault and not even Spike's suggestion cheers her up. Coming to tears, Lickety Split sings her sorrows, which echo down below. When her song is over, they realize the echos are from someone trapped below.
Using a bucket, they bring up a Flutter Pony named Morning Glory, whom had gotten trapped after stopping for a drink. As a thanks, MG agrees to help and takes them to Flutter Valley while the Smooze threatens Paradise Estate. Megan and the others arrive to the Shadow Forest and Shady finds them a trail to venture in but it's not proving to be friendly at all.