Months after the events of Kyra II, Daisy gives birth to a filly who rapidly grows into an 8-year-old named Malice with a fragmented memory of a past life. Wanting their new "adopted" child to learn the ways of mortals, Kyra enrolls her at the Ponyville Elementary School. Everything seems to be going relatively well, but when a rogue demon appears in Ponyville, Malice will have to choose between obeying her mother or doing what's right.