After the Berryworks water supply is blocked by a giant rock brought down by a lightning storm, Strawberry Shortcake and her friends are desperate to find a water source before they will have to evacuate their hometown, Berry Bitty City, for good to live in another region far away, but also a large source of water. But she hears that legend is told to have an ancient artifact found in the mountains to expose eternal water when revealed to sunlight. She and her friends head off on a quest to retrieve the object and try to save their town with it. But unknown to them, the main "legend" is actually a false hoax.