Jerry and his siblings, Kelbo and Megan (Jerry revealed to the kids they have an aunt), need to retake the Wizard test that, in their teen years, determined who got to keep their powers. When Alex, Justin and Max see how competitive the contest gets, they realize the same test could eventually tear their family apart as well.
After Dean moves away, Alex continues to date him by using magic to enter his dreams. When he pays her a surprise visit and the real date isn't as great as she had dreamt, she searches for a way to break up with him. Meanwhile Justin tells his vampire girlfriend Juliet that he is not allowed to go on her family camping trip.
Justin wins an essay contest that allows him to go on the S.S. Tipton and meet London Tipton. Alex soon becomes friends with Bailey Pickett, and uses magic to bring Harper on-board. Max and Zack Martin compete against each other in many crazy challenges. The crossover continues on The Suite Life on Deck: S01E21 Double-crossed (II). It ends on Hannah Montana: S03E20 Super(stitious) Girl (III)
When Alex, Harper and Justin are accidentally transported into a silent movie, Justin and Harper begin to recognize a closer bond between them. Things heat up at the restaurant when Theresa and Jerry begin arguing about who has the more difficult job. To determine who's right, the two switch places.
Alex gets the lead as Tinkerbell in the school's production of Peter Pan but doesn't want the part. So when she enlists the help of a real fairy to sub in and play the part, it causes the production to get out of control and the play is not necessarily performed in the same way as the traditional Peter Pan fairytale!
When Mr. Stuffleby, a wizard guidance counselor, informs the kids that they must have a viable profession to fall back on in the event that they don't become wizards, Max chooses to become a street magician while Alex and Justin decide to form a band. They all test their skills by hosting a Waverly After Dark performance at the Sub Station.
Alex tries to avoid running into Harper at the annual Comic-Con type convention in order to protect her wizard secret but winds up revealing the truth after Harper takes a spin in Alex’s power laden Battle Diva costume. Meanwhile, Justin and Max work alongside Hugh Normous and the Emergency Wizards to make sure other wizards don’t perform any real magic.
The kids fail at their group magic project, so Jerry devises a plan that will force them to work together. Now Alex must wrestle with sacrificing her first one-on-one date with Dean so that she and Justin can help Max's superhero, "Maximan," solve the crime and prove to Jerry that the siblings can work as a team.