Anastasia's mother storms in just as her daughter is about to jump through the magic mirror with Will Scarlet to Wonderland. She voices her displeasure regarding their relationship. Her harsh words devastate Anastasia. Will assures his true love that they can build a life together. He accepts Anastasia for who she is. He doesn't care that she's not the queen her mother wants her to be. Anastasia then takes Will's hand as they leap into the magic mirror to Wonderland.
Will struggles to make a good life in Wonderland. He realizes that attending a royal ball will make Anastasia happy, so the two of them crash the party. Will is uncomfortable, but Anastasia feels right at home. She meets the king, who is quite taken with her. Will and Anastasia are thrown out of the ball when they are unmasked as peasants. On the bright side, Will swiped some bread that'll last them a week. That's not good enough for Anastasia. She wants to go home, but not empty-handed. She wants to steal the crown jewels from the palace.
Anastasia sneaks into the palace where she finds the jewels. The ruby red crown on the top shelf is especially pleasing to her. She's startled when someone appears behind her. It's the king. He's intrigued by Anastasia. What would she think if she didn't have to steal jewels? What if they just belonged to her? He asks for Anastasia to become his queen as he places the red crown atop her head. He knows that she loves another, but that's not enough for someone like her. Moments later, the king introduces his new queen to his loyal subjects. A devastated Will looks up as his true love stands at the side of another.
Alice covers the stone representation of the Knave with a blanket. She promises to get him out of this horrific situation. If only she could find Cyrus. The Red Queen offers to help. She wants to make a deal. The Red Queen needs to procure something that will protect her from dark magic. It'll protect her from Jafar. If Alice helps her get the magic dust she needs, she'll reward her by leading her to Cyrus.
Cyrus is still locked in his cage. The other prisoner, the elderly man, says he has something Jafar wants. It's something he'll never get. Cyrus believes their punishments will end soon enough. He escapes from his cage and overcomes a guard. He swipes the keys to free the elderly man as well. But the old man drops them into the abyss. He doesn't want to slow down Cyrus.
Jafar knows the reason the White Rabbit betrayed Alice is due to debt he has to the Red Queen. He offers to help. All he needs from the White Rabbit is to know everything about Alice, particularly info on everyone she's ever loved. Jafar chops off the rabbit's foot to get him to cooperate. He learns there is someone Alice cares about deeply, but this person is not in Wonderland. After Jafar gets the information he needs, he repairs the rabbit's foot. He wants him to do more work for him. The White Rabbit tries to escape. He sees Cyrus trying to do the same, but doesn't turn him in. Instead, he returns to Jafar, who orders him to start digging a hole.
Alice and the Red Queen head to the other side of the Great Divide. The magic dust they seek is across a dangerous ravine where only the pure of heart can make the leap. That's where Alice comes in. She realizes the "leap" is a "leap of faith." Alice uses the faith in her love for Cyrus to allow her to step across an invisible bridge. But the bridge ends and she plunges into the depths below. She lands in an area filled with skeletons of others who have failed to make it to the other side. It's there that she meets a young girl who looks a lot like her.
The young Alice reminds present day Alice that she had dreams of revenge. She stomps on the ground to cause the Red Queen to fall into the pit. The young girl wants her to kill her nemesis. Alice raises her sword. The Red Queen must pay for her sins. But it won't be by Alice's hand. She refuses to kill her. Alice learns she passed the test. She really is pure of heart. Her reward: the magic dust.
The Red Queen goes back on her word. She swipes the dust without revealing Cyrus's location. What she doesn't know is that Alice kept some of the magic dust for herself. The Red Queen uses some of her magic dust to release the Knave from his stone prison. She sneaks off so as to not be seen. As for Alice, she blows her magic dust into the wind so she can see where Cyrus is. Jafar's castle appears in the distance. Alice says she's coming for Cyrus, who says the exact same thing a world away.