Chacha, a young girl distinguished by her red hooded cloak crafted by her guardian Seravy—the world's greatest magician—resides with him in a mountaintop cottage on Mochi-mochi Mountain. Training under him, her spells often misfire catastrophically due to homonym mix-ups, conjuring spiders instead of clouds or an old man instead of her friend Riiya. Yet she perseveres with unwavering cheerfulness.

Her origins unfold as a hidden princess: daughter of a king and queen whose kingdom fell to the demon Daimaō, leaving her parents petrified. Rescued as an infant by Seravy during the invasion, she carries the legacy of her grandfather Grand King Genius, who sacrificed himself to imprison Daimaō. This heritage thrusts her into the conflict against Daimaō’s forces.

Her quest intertwines with allies Riiya, a werewolf of immense strength, and Shiine, a wizard trained by Seravy’s rival Dorothy. Their bond unlocks her "Magical Princess" transformation via three items—her wing pendant, Riiya’s bracelet, and Shiine’s ring—activated by the phrase "Let Love, Courage and Hope—Magical Princess Holy Up!". Initially wielding the Beauty Serene Arrow to purify foes, she later gains the Phoenix Sword (from protecting the creature Piisuke) and the Magical Bird Shield. These arm her against adversaries like Access and Daimaō, culminating in a final battle where eight Holy Warriors defeat Daimaō and restore her kingdom.

Post-victory, the theft of the King’s Crest by Soprano unleashes demons. To reseal the demonic gate, Chacha, Riiya, and Shiine sacrifice their magical items—gifts from her mother, now a goddess—permanently losing her Magical Princess powers. Her royal family provides new tools: a brooch for absorbing/redirecting magic, a compact to communicate with her mother, and the Crescent Aurora Bracelet summoning an "Assisting Boomerang".

Daily life sees her attending Urara School’s Banana Class with Riiya and Shiine, befriending classmates like the ninja Orin while navigating rivalries with potion-expert Yakko and mermaid Marin. Romantic tension arises as both Riiya and Shiine vie for her affection. Her experiences span confronting amnesia, school festivals, and quests like retrieving a stolen stamp.

Beyond the series, OVAs depict a camping trip where she mistakes a masked lumberjack for a horror slasher. A sequel manga, "Akazukin Chacha N", relocates her to modern Tokyo.