Thomas wants to be a really useful engine, but James teases Thomas for bumping the buffers and Gordon scolds Thomas for being late, making him feel unimportant. Later Thomas is shunting trucks of coal for Henry and one of the trucks goes through the buffers. Thomas tells this to Percy who suggests that they are the magic buffers that lead to a mysterious engine called Lady. Thomas goes through the buffers and sees the coal truck and picks it up. Thomas reaches the end of the line and sees a world he has never seen before. He sees Lady and gives her some coal. Then Thomas and Lady travel back to Sodor using The Magic Railroad. The railroad is coming back to life. Once they are back on Sodor all the engines cheer for Thomas.
- Splatter and Dodge (not named)
- James (does not speak)
- Lady (does not speak)
- Harold (does not speak)
- Toby (cameo)
- Sir Topham Hatt (mentioned)
- This book is based on the 2000 movie, Thomas and the Magic Railroad.
- For some reason, Diesel 10 and the human characters are never seen nor are they ever mentioned.
- The original version of the "Sneezing Powder" sequence at the quarry in the 1999 script is present in this book.
- This book is featured as a Read-Along story on the Songs from the Station DVD narrated by Robin Smith.
- This is the only book illustrated by Coatimundi Studios which would later feature Thomas and the characters in a majority of advertisements in recent years including DVD menus, this is also the only product by the same studio where it would have different facial expressions for the characters anything after that is just all smiles.
- James' wheel arches are sometimes missing.
- Thomas' footplate is sometimes missing.
- The mail coaches do not have doors.
- When Thomas puffs out of the tunnel, the trucks' wheels cannot be seen.
- In an illustration on the other side of Lady's front wheel the rail is not coloured gold.
- In some pictures Thomas and Lady are not on the rails.
- Gordon and Henry are missing half of their running gears.
- Thomas is shown pulling many Annies and Clarabels.