The Little Engine That Could

A small shunter in Dream Land cherishes the dream of delivering dreams to the Real World. She attempts to pull a full train for Big Locomotive, causing a traffic jam. The Tower reminds her she is limited to one boxcar at a time, while Rusty offers encouragement to persevere.

In the Real World, Richard is bullied by Scott and Stretch who steal his grandfather’s pocket watch. He runs to a park and hides inside a train, unaware that Rusty is about to depart for Dream Land. Richard's arrival in Dream Land inadvertently collapses the tunnel between worlds, stranding everyone.

The Tower demotes Rusty to track-cleaner, a humiliation that casts a shadow over Little Engine’s ambitions. She loses an ally and faces the reality of limited duties again. The setback becomes the catalyst for renewed resolve.

Rusty shares news of an old route over Dream Mountain and suggests using it to return Richard to the Real World. Little Engine volunteers to undertake the journey if Rusty is reinstated. The Tower agrees to the plan, setting the rescue in motion.

Little Engine and Richard set out along the tracks but are nearly run down by the high-speed Evening Express. They are forced off the rails but press on, determined to reach the mountain and reunite the worlds. The peril underscores the risks of their mission.

The duo travels through Mushroom Forest and a prairie, where Engine 35’s birthday train is derailed by the tunnel collapse. The misfortune deepens the crisis and tests the group’s resolve. Despite the chaos, they persevere together.

Shiny Passenger Train, Freight Train, and Big Locomotive refuse to believe the old tracks still exist. Faced with skepticism from the larger engines, Little Engine, Richard, and the birthday train decide to continue on their own. They commit to the risky frontier rather than wait for help.

The group locates the old tracks and begins climbing Dream Mountain. A rickety wooden bridge collapses, nearly sending Richard to the way below, but Little Engine and Ace save him. The moment cements their teamwork and courage.

Using a railway mail pole, they replace the missing rail and finish the climb toward the peak. The improvised fix showcases ingenuity and teamwork under pressure. The night trek continues with renewed momentum.

Little Engine’s water tank begins leaking, stranding her on the mountain. Richard and Hudson work together to apply the emergency brake and keep the group from being separated. They strengthen their trust in each other through the repair.

A dark gray Nightmare Train appears and claims it can take the toys to the Real World. Richard faces hallucinations of the bullies aboard the Nightmare Train but finds the courage to resist. Ace escapes to help Little Engine and refuels her tank at a nearby tower.

Richard falls from the Nightmare Train and is reunited with Little Engine. She fixes her leak, then chases the Nightmare Train to rescue the others. Their determination fuels a last, desperate push toward the mountain’s peak.

With great effort, Little Engine climbs to the mountain’s peak and opens the portal to the Real World, delivering the toys to their destinations. Almost no time passes before Richard returns to his school, marking the end of their Dream Land mission.

Richard faces his bullies at school, reclaiming his grandfather’s watch with the principal's intervention. He reconciles with his friend Marcus and chooses to keep his Dream Land adventure secret, protecting his new sense of confidence. The Real World acknowledges his bravery, and he moves forward.

Back in Dream Land, Little Engine is promoted to Dream Hauler, and Rusty is reinstated with honor in a ticker tape parade. The toys find new homes in the Real World, and the Nightmare Train is derailed on a snowbank, defeated by the courage of the little engine.