Episode 2 is titled The Unexpected Guest (The original title is L’ospite inattesa, which means the same thing). It is the second episode of the first season.
Katie arrives at the Pocket Kingdom. Oristolfo gives her a collar that allows her to understand small animals. They reveal to her Princess’ disappearance. Then they decide to make her pass some tests to prove her courage and her kind-heartedness. Meanwhile, Katie finds out with joy that she is Oristolfo’s little owner and gives him a new name: Magic.
The Friendship Trail has brought Kate to Pocketville, where she is met by Magic, her special friend, and The Royal Guards, and changed her clothes into an orange sweater. Everybody gasps ands confused at the sight of Kate, since it is rare for a human to appear in Pocketville.
Magic attempts to converse with Kate, but she can not understand Magic and can only hear barks. The Royal Guards suggest that Kate go back to the Big City, but Magic rejects their idea. Magic picks up the collar holding the other half of the Friendship Heart and places it down near Kate's feet. Kate is unsure what Magic is wanting her to do. Magic places the collar in her hands and Kate, now sure of what Magic is wanting her to do, puts the collar on her wrist.
William doubts Magic's idea that simply putting on the collar would make her understand what they're saying. Upon understanding William, Kate is astounded that the inhabitants of Pocketville can talk. Magic suggests that they explain everything that has happened in Pocketville, and William agrees, and they go inside the castle as it is raining.
Kate is told that Pocketville is where puppies come from. William states that it indeed is, and it is used to find puppies for good home. Mela explains that because the fountain is now dry, and the Princess is gone, no more Friendship Ceremonies can occur. Danny says the Princess is the only one with the ability to perform magic, and Kate is worried she can never arrive home without the Princess. Danny attempts to reassure Kate by asserting that they'll locate the Princess. Magic suggests Evershell can assist them in locating Ava, but William warns him to stop mentioning much facts to Kate, as he is unsure whether they can trust her or not. Magic is confident they can trust her.
Kate and Magic leave the guards to discuss what to do with Kate. William talks about how the fate of Pocketville is relying on them. Danny thinks that Kate is nice, but Balloon says not to take chances. Mela reminds the Royal Guards that the Friendship Trail brought her to Pocketville, ergo meaning she is "Pure of heart". The Royal Guards are still unsure whether to trust her, and William ends the conversation suggesting they should test Kate.
Meanwhile, Magic and Kate are together in the kitchen. Magic states to Kate that he is her special friend and that he was supposed to arrive at the Big City to meet her, but he’s happy that they're together. Kate admits she is unsure what an owner does with a puppy, Magic says that she should choose a name - not his current name, Oristolfo. Eventually, Kate names him Magic after all the magical events that have occurred.
Afterwards, the Royal Guards arrive, Magic jumping around ecstatic with his new name. William asks Kate whether she would like to walk around the village, and Katie is quite fond to do so. Kate was worried that her dad would be worrying about her, and William assured her that time runs differently in Pocketville. Kate commences the walk around Pocketville.
The first test is at the Pocketville Café, where Kate proves she is brave by not being scared of the bear’s shadow. The second test was to help the beavers with their water wheel, and Kate did so, impressing the guards and showing that she is kind and considerate. Balloon still wasn’t convinced, and did one more test where she gave Kate an ordinary stone and said it had powers to turn her into a princess. Kate refused the stone, proving she wasn’t greedy and Balloon was impressed.
At night, Kate was allowed to sleep in Ava’s bedroom. She confided with Magic that she was scared that she would never see her parents again, and Magic comforted her as she cried. The Royal Guards were watching this unfold with a magic mirror, and they finally decided they could trust Kate and begin the search for Ava.
Meanwhile, Eva has set up base camp in the Ever Grey Swamp, planning to take over Ava as the new princess of Pocketville. Ava is revealed to be in the Big City and wants to go back home.
View the episode’s transcript here.