Long ago, the Little Ponies lived in a wondrous, verdant land called Dream Valley. Their world was full of magic and dreams, a place where pegasi filled the air and ponies and unicorns frolicked in dewy meadows. The center of Dream Valley was the Dream Castle, where Queen Majesty ruled with the help of the Favored, gifted ponies distinguished at birth by special birthmarks. Queen Majesty was intelligent and kind, and in her decisions she always sought to promote peace and to please the Other, a mysterious entity who watched Dream Valley.

Gradually, Dream Valley fell into decline. Things seemed to move a little slower, and the colors dimmed slightly with each day. The ponies went into a deep slumber, and Majesty's last thought was that the Other had left Dream Valley.

One day, the ponies awakened, only to see Dream Valley was gone. The Castle seemed rather small, and one of its walls was missing. A few of the ponies were dirty and even disfigured. Piled helplessly upon one another, the ponies realized they were trapped in a box. One by one, the Little Ponies realized they had been toys all along. Dream Valley had never existed. The birthmarks on the Favored were nothing more than a child's initials. The Other was a Little Girl, and the Little Girl no longer cared for them. This moment of truth was known as the Shock.

It was during this time that the ponies fell into a despair. Many became ill with a strange pox, which caused black spots to appear all over a pony's body. The Favored, whose self-concepts relied more heavily on the imagination of the Little Girl, were more prone to the pox, and many died as a result. The ponies lingered in darkness for many years. Finally, the despair was broken when the box was suddenly moved into a bright place outdoors. Other girls peeked inside, passing over the Little Ponies. Eventually one Girl took the box home with her.

Cleaned and cared for, the ponies soon joined other ponies, as well as many other toys. These toys created their own community, where the ponies tried their best to recreate the world they once knew. Society is divided, however, and the ponies face many struggles ahead. The Shock was only the beginning...