With the defeat of Shuriki and restoration of Avalor, Elena is eager to prove to her grandparents and cousin Esteban that she is capable of ruling as queen. Her first challenge involves finding stolen ships and rescuing Isabel and Gabe from magical shape shifters called Noblins.
Elena attempts to balance her duties as Crown Princess and devotion to her family when a visiting emperor arrives at the same time her sister Isabel needs her help with a project for the annual Inventor's Fair.
A rock monster named Charoca that appears in a nearby village causes problems with his explosive temper triggering volcanic activity. Elena is put at odds with the Grand Council when they vote to remove him while she desires to hear him out.
While the castle is preparing a surprise party for Esteban, Elena and Mateo take him sailing to an island where the Fountain of Youth is located. Elena and Mateo must save Esteban when he drinks too much water and becomes younger.
While on an official visit to the Kingdom of Cordoba, Prince Alonso convinces Elena to briefly set aside her royal duties. Meanwhile, the Yacalli, a gigantic wooden totem creature based on a Mayan legend, awakens.
During an archaeological dig, Esteban accidentally releases a mischievous duende, a magical elf-like creature based on Latino folklore, who sets out on a mission to unleash hundreds of other duendes on Avalor.
Navidad has come to Avalor and Elena decides to bring the numerous communities within the kingdom together to share each other's holiday traditions, but Doña Paloma's schemes make things tense among everyone. In the midst of this competition, Elena must remind everyone of the true spirit of Navidad.