Kylie is still stuck in the whirlpool, when Merliah saves her. Not knowing what is going on, Kylie takes the necklace off, all she wants to get back on land and be human again. The necklace is what helps her breathe underwater. Merliah quickly gives it back. Together they decide to fight Eris.
Eris makes it to Aquellia and gives everyone their worst nightmares. Merliah can feel that her mother needs help. She decides to do the ceremony, but will remain a mermaid forever. Eris attempts to give Merliah her worst nightmare, but it does not work. Instead it causes Eris to gain legs. All the others are broken free from their nightmares. Merliah and Kylie head back to land, Merliah is sad that she will never have legs again. Her legs appear and her mother explains that Merliah can have it both ways because she is both human and mermaid.
|Merliah and Zuma|
|barbie in mermaid tale|
In the meantime, Merliah's mother Queen Calissa is heading to Aquellia. She is sad that Merliah is not with her. Zuma tries to convince Calissa to talk to Merliah, but she refuses and proceeds in getting ready for the ceremony. Merliah is getting ready for a photo shoot for Wave Crest and takes off her necklace that allows her to communicate with her mother. Kylie steals it. She is tricked into putting it on and turns into a mermaid. She is caught in a whirlpool and Eris, Merliah's wicked aunt is released. Eris has acquired a new power making individuals live their nightmares.
Merliah breaks her mother's heart by telling her that she is attending the competition instead of Changing of the Tides. She leaves Oceana and heads to Australia. Kylie ends up winning the competition, but Merliah gets the glory for a trick she performed. One of the sponsors, Wave Crest approaches Merliah about becoming a spokesperson for the company. She immediately agrees.