The show is set in the Little Kingdom, which is a miniature kingdom hidden among bushes. It is ruled by fairies King and Queen Thistle. They live in the Little Castle with their three daughters; 8-year-old Princess Holly and younger twins Daisy and Poppy. Nanny Plum is the fairies' maid, known for her sarcastic comments and overall uninterested mood. Elves, including 8-year-old Ben, live at the Great Elf Tree, which acts as a school, library, apartment block and factory. Elves are more traditional and live like humans, not using magic, while fairies are modern and magic-oriented. Despite this, the Elf Factory is run on magic.

The Wise Old Elf is the leader of his kind. He operates the Elf Rescue, Elf Farm and Elf Windmill, among many others. Elves have their own catchphrase, "...and I'm an elf" (occasionally "we're elves"), tooting their horn afterward, however they sometimes just blow a raspberry, such as in “The Elf Factory” when an Elf Worker forgets her horn. Fairies have a matching catchphrase, "I'm a fairy", followed by a wave and sparkle of their wands. Ben and Holly also have a coccinellid pet named Gaston, who barks like a dog.

Episode 1 (Series 1, Episode 21): “Gaston's Visit”

Gaston catches a cold, so King Thistle invites him to stay at the castle while his old home is being repaired due to a leak in the roof.

Episode 2 (Series 1, Episode 13): “Nanny Plum's Lesson”

Nanny Plum teaches the girls some important fairy rules. However, when Nanny Plum is accidentally blown everything by a strong wind, Ben, Holly, Violet, Strawberry, and Gaston must come to her rescue.

Episode 3 (Series 1, Episode 28): “The Elf Windmill”

King Thistle wants bread for his Royal breakfast, but there isn't any flour in the castle. Mr. Elf takes Ben, Holly, and Nanny Plum to the Elf Windmill to find out why it takes so long to make flour.

Episode 4 (Series 1, Episode 15): “Mrs. Witch”

Queen Thistle reads Ben and Holly a book about a nasty witch, so Nanny takes the children to a real one who lives in the forest. But Nanny is rude to the witch, who freezes her with magic.

Episode 5 (Series 1, Episode 16): “Elf Joke Day”

Ben and Holly help the Wise Old Elf play a trick on Nanny Plum for Elf Joke Day, but she does not see the funny side and gets her revenge by turning the Wise Old Elf into a giant snail.

Episode 6 (Series 1, Episode 17): “King Thistle's New Clothes”

Snooty King and Queen Marigold are coming to visit, but when the King's new clothes get dirty Nanny cleans them and accidentally shrinks them all.

Episode 7 (Series 1, Episode 18): “Elf School”

Holly and Nanny Plum join Ben at Elf School, where the Wise Old Elf tells Holly and Nanny Plum that strictly no magic should be used. All the Elf children are very good at building their toys.

Episode 8 (Series 1, Episode 19): “The Royal Golf Course”

A naughty mole disturbs King Thistle's royal golf course, so a gnome is enlisted to help drive it away. Soon the gnome is ordering the elves around, turning the golf course into a crazy golf course!

Episode 9 (Series 1, Episode 20): “Morning, Noon and Night”

The Wise Old Elf teaches the elves how to tell the time, and takes Ben and Holly to see the big grandfather clock at the top of the Elf Tree.

Episode 10 (Series 1, Episode 32): “Tadpoles”

Holly takes frogspawn home to look after but is shocked the following morning to discover it has turned into tadpoles.

Episode 11 (Series 1, Episode 22): “Trip to the Seaside”

Holly joins Ben and his family on an Elf trip to the seaside, and Mr. Elf tells her that no magic is to be used. But when they realise that no one has remembered to pack lunch, they ask Holly to use her magic to make some.