Ten months after her terrifying escape from a sea spirit, Josephine is happy to settle back into life in Fairy Vale, playing on her cricket team and spending time with her Dad, Miss Alleyne and best friend Ahkai. But her peace is shattered when Lynne (a family friend from overseas) forms a friendship with Ahkai, an ex-teacher returns to Fairy Vale to torment her, and Josephine finds out that she and Ahkai will be going to different schools.

Josephine’s biggest worry is losing her friendship with Ahkai, until she gets lost in a canefield and encounters the Heartman, a cloaked figure who steals the hearts of children. When Ahkai is kidnapped by the Heartman, Josephine and Lynne have to put their differences aside and venture into the Heartman’s underground lair to save him.