The Masked Magician is the nineteenth episode of Season 5.
Timmy’s neighborhood is throwing a block party, and it seems the couples without kids are able to afford some great talent: one has organized an air show, and another has hired pop princess Britney Britney to perform! Unfortunately, the best the Turners could provide was Mr. Bickles and his lame magic act. In an attempt to make his parents stand out, Timmy dons the disguise of The Masked Magician.
Timmy's neighborhood is having a block party. Unfortunately, the show at his house is by the worst. Timmy's art teacher, Mr. Bickles, is putting on a horrible magic show called "The Great Bickelini" at the Turner's house, while other families that don't have any children (and thus more money) are able to afford more extravagant shows. His neighbors, the Feifers, are putting on an air show, while the hated Dinklebergs are hosting a Britney Britney concert. Since Timmy's parents don't have enough money for anything special, they are stuck hiring Mr. Bickles, whose show is so boring and lame that everyone leaves to the Dinkleberg's concert, much to Mr. Turner's frustration. Wanda states that you'd have to be "deranged" to think he's real, and sure enough Mr. Crocker shows up with a Magic Detector, convinced that Mr. Bickles is really using magic. Mr. Bickles attempts to win his audience back with an ill-conceived escape act.
Timmy wants to use his fairies to improve the magic show, but with Mr. Crocker around he risks his fairies being exposed in front of the public. So Timmy wishes that his identity was hidden and he becomes "The Masked Magician". He shoves Mr. Bickles off the stage and quickly wows the audience with his fairy-assisted magic. His first trick was getting them back there in the first place, by lifting them up all at once and moving them to Timmy's lawn. Then, Timmy asks Crocker to volunteer for another magic trick. Crocker believes its a good chance to learn about the magic the "child-sized buck-toothed mystery magician on Timmy Turner's front yard" and agrees. Timmy puts Mr. Crocker into a wooden box, and then poofs up an elephant above the box which lands on it and crushes it. Then, Timmy takes the scrunched up Mr. Crocker by the head and, with another poof, pulls Crocker's head from his body. His last trick involves poofing Mr. Crocker into a cage, with lions, and a steak tied around his neck. Mr. Crocker screams and breaks through the bars, running away while the lions chase him. Mr. Bickles watches the act with both amazement and jealousy, vowing to get revenge on The Masked Magician for stealing his dream.
The popular kids notice the magic show going on and leave Britney Britney's concert. She becomes angry, and attempts to get people back by turning up the lasers on her stage. The increased powered lasers cause one of the Feifer's Air Show jets to fall from the sky. Britney Britney quickly packs up and leaves for Las Vegas while the plane plummets toward the crowd. The Masked Magician uses "his" magic to stop the plane inches from Trixie Tang's head. The people proclaim The Masked Magician a superhero, and he receives a kiss of gratitude from Trixie. A bunch of spinning newspapers are shown, detailing the rise of The Masked Magician and Mr. Bickle's vow for revenge. The news papers were spinning because Cosmo was holding and spinning them, Wanda tells him to stop spinning the newspaper as she is trying to read, but Cosmo spins Wanda instead so she can read the paper. Timmy swears to use his Masked Magician identity for truth, justice, and if he sees Francis, pay back. Using his magic, The Masked Magician saves a number of people around town. He stops a tornado from destroying Chester's trailer park; a thief from stealing a toothless old lady's purse; and he rescues Vicky who was tied up on train tracks, by sawing her in half so the train pass right through her.
The Masked Magician visits the Chincinnati-universe diner for advice on being a superhero from the Crimson Chin, who still sees him as his sidekick, Cleft the Boy Chin Wonder. The Chin warns Timmy that one day a super villain will show up to destroy him and that villain may or not have been created by Timmy unintentionally. Chin reaches out and grabs the waiter by the neck, whom was about to attack him, revealing that it was really The Bronze Kneecap. Crimson Chin explains the Bronze Kneecap's tragic story. He was once Ron Hambone, a Jai alai player who always won third place. When he was about to win his first gold trophy by getting one more point, Chin entered the contest and accidentally tripped Ron Hambone, causing him to break his knee and win third place once again. Ron, then, melted down all his bronze trophies to cast the bronze armor that he terrorizes Chincinnati in, thereby turning himself into ... "THE BRONZE KNEECAP". Finishing his backstory, Timmy asks why he didn't just move on as that was an accident. The Bronze Kneecap surprised by Timmy's question states it was because the Chin never stated that he was sorry. Crimson Chin then throws The Bronze Kneecap out of the diner and directly into jail. Wanda tells Timmy that the Crimson Chin is right, and that being a full-time superhero is a dangerous job. Timmy reassures his fairies they will be fine, from what Timmy is aware of he hasn't made any enemies. Unfortunately, he already has, Mr. Bickles is hard at working sewing together a super villain costume by sewing handkerchiefs together, becoming the villain "The Handker-Chief".
Mr. Bickles, now masquerading as The Handerker-Chief, uses a peddled flying machine to drop a huge red Chiffon handkerchief over all of Dimmsdale so that he can make the city disappear. Timmy arrives to stop Mr. Bickles, who only becomes more angry that Timmy has already figured out his identity AND can fly on his own. Before Mr. Bickles can make the city disappear, Timmy apologizes, stating that he only wanted to help the Turners (his parents) and he didn't mean to ruin his career like Mr. Bickles thought. Mr. Bickles was not expecting this, and agrees to stop being a villain as long as Timmy stops being a superhero... and he gets a show in Las Vegas. At the Las Vegas show, Timmy and his parents watch Mr. Bickles perform magic tricks (which actually work now, thanks to Cosmo and Wanda's magic). Timmy tells his fairies that sometimes "I'm sorry" is the only magic words you need and MORAL OF THE STORY flashes on the screen in bright colors. Timmy asks his fairies where Mr. Bickles got his show, his fairies reply that he kicked out Britney Britney out of the casino, and the fairies supplied the magic. Just then Britney Britney shows up in a super villain costume, she is now the "Platinum Princess" and her enemy is The Great Bickelini. She fires a bunch of platinum discs at Mr. Bickles, who decides its probably time to go back to teaching after what just happened.
The title card, The End appears and it is revealed that Cosmo had been spinning it like the newspaper from earlier. Wanda tells him to stop that and Cosmo looks directly at the screen as the episode ends.
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