As are a member of the I.P.A. (Innovation Protection Agency) (with the guidance of the player's mentor,Isabelle Dahl) the player will learn the ropes of becoming a full fledged I.P.A agent. The player is an Ilari often referred to as a "toy pixie". The player chooses what type of toy their character is and learns to move through time with the aid of time crystals, fixing disruptions, and will eventually discover the cause of the trouble

The antagonist, Mortise, a powerful Ilari, that inhabits a luddite wooden doll opposed to the evolution of technology and is trying to prevent key inventions and artistic creations from occurring. Mortise feels that current innovations (especially in toys) have created dull children unable to attract creative toy pixies. In his opinion Illari/pixies have become lazy and uninteresting as a result. The Muses have just gone too far.

With his team of other disgruntled Ilari/toy pixies, they imprison the Muses who are responsible for all ideas, and subsequently stop many key inventions and artistic creations from occurring. The end goal is to free the Muses and imprison Mortise and his compatriots where they will do time at the North Pole. At the North Pole toy pixies are reformed and put to work making toys for Santa.