Bheem and friends have accompanied Prof. Dhoomketu to the country of Valoza (Derived from Finnish word Valoisa meaning Bright) as Dhoomketu wants to study the Northern Lights Phenomena which the people of Valoza call the Rainbow Lights. They have fun as the townspeople celebrate the Festival of Light and Darkness in anticipation of the Rainbow Lights that will appear soon. They meet Uncle Ben, a local guide, who will be taking them to the special bubble hotels so they can see the Rainbow Lights unobstructed. There Raju keeps spotting glowing eyes and gets scared.
When Jaggu and Kalia make fun of him of being scared, he gets more insecure and loses his confidence. While waiting for the northern lights to appear, they learn about the legendary battle of Darkness and Light when the Valozan ancestors, the Vahans, defeated the King of Darkness Dragar forever. Soon they learn about the legend of the fire fox called Jwala that brings about the rainbow lights and come across it personally. Jwala takes them into a magic realm for an important task. The king of darkness, Dragar is coming back and they need the kids to awaken the mountain giant, Kokas to help in the war against Dragar. Olim, the leader of the Vahans helps train the kids in using the magic spears in preparation of their journey. The kids have a tough travel as they pass through an ice forest where a sprite Magi Mogo steals their magic horn refusing to give it back till the kids rid her forest of the annoying mosquitos swarming around. Once this is done, the kids proceed and have an encounter with the great Kokas.
Meanwhile, Dragar attacks Valoza and is steadily spreading darkness despite a brave fight put up by Jwala and the Vahans. The kids return with Kokas and help fight Dragar and his shadow army. Raju gets frightened of Dragar’s appearance and hides leaving the kids weaker as their spears get strong when all of them fight together. With Bheem and Jwala’s help, Raju regains his confidence and joins the fight and overcomes his fear. Kokas gets defeated by Dragar before he could strike Dragar with the last defeating blow. Bheem heroically grabs Kokas’ weapon and makes the final blow finally defeating Dragar and letting light win over darkness.