Private discovers that the fountain grants wishes and Alice nearly exposes the penguins’ operation.
After being accidentally knocked under a pile of pennies, Private is ordered to get rid of the coinage. While at the zoo's fountain to do so, Private notices Mort biting into a penny and advises him to toss it into the fountain to make a wish instead.
Wishing for gumballs, Mort tosses the penny in and, to the serendipitous surprise of Private, gets them, leading Private to conclude that the fountain is magic. After Private tells the other penguins, Skipper warns that the fountain should be kept secret for fear of a careless wish wreaking havoc or exposing their operations, and limits his men to one wish each.
However, Julien soon learns of the fountain's power through Mort, as does the rest of the zoo through Julien's exposure. Following the penguins warning the other animals about the potential dangers, Alice spots Private out of his habitat, but he manages to get away from her. But Alice then finds a penny and tosses it into the fountain, wishing she knew what the story was with the penguins. Her wish triggers Kowalski to accidentally blow his plasma blaster, which he had wished for, through the top of the penguin habitat, exposing their HQ to Alice and soon resulting in the foursome being caged to be studied and dissected by the government.
But just as the penguins’ future looks bleak, Private has an idea, and with a penny from Rico, manages to get a penny into the fountain as the caged penguins pass by it and unwishes everything, setting things back to normal. Kowalski then convinces Private that his belief in the magic fountain was a delusion caused by Private's bump on the head, but Burt is seen with a French baguette and wearing a beret, and since he had wished for a trip to Paris, suggests that it may not have been a delusion after all.