Emma and Sheltie can't wait for the funfair to come to Little Applewood but its arrival brings problems. Someone travelling with the fair is trying to sabotage the rides to stop Mr. Girola, the fairground boss, and his carousel, from winning the showman carnival's top prize - the Golden Fairground Shield. Emma and Sheltie play detective and discover the culprit but Mr. Girola still needs help as his carousel has been smashed. Everything possible is done to fix the carousel and when one wooden figure proves to be beyond repair, Sheltie stands in as a living carousel pony and helps Mr. Girola win the Shield.