The dream chasers hunt for Lunia's hourglass, which they believe will help them defeat the evil Dreamsmasher. After learning that Mrs. C is, in fact, Lunia, the team is on the hunt for Lunia's hourglass, in hopes that it will give Lunia her former dream keeper powers. The team splits up with Mateo and Izzie trying their luck in the waking world, where their school has been completely taken over by Happy App!