Unico in the Island of Magic

Moribi Murano (often miscredited as "Mami Sugino") directed the second movie, titled Maho no Shima e ユニコ 魔法の島へ (To the Magic Island) in Japanese and Unico in the Island of Magic in English, which was released on July 16, 1983, five days before the release of the first Barefoot Gen movie, which used many of the same production staff.

In this film, Unico meets a kind-hearted young girl named Cheri (also spelled "Cherry", voiced by Sumi Shimamoto). Cheri's older brother, Toby (in Japanese, "Torubi", voiced by Shuichi Ikeda), is working for the evil Lord Kuruku (in Japanese, "Kukuruku"), who plans to turn all living creatures, animals and people alike, into unusual zombie-like beings called "Living Puppets" to be his slaves; Toby's job is to change people into Living Puppets and then lure the Living Puppets to Kuruku's island castle in exchange for learning more of Kuruku's magic. His plan is to obey and serve until he learns enough to be the master, but fails to protect Cheri twice. Toby also takes on Melvin the Magnificat ("Yamaneko" in Japanese) - who hates Unico because Unico "intruded" in "his" forest (the forest in which the West Wind left Unico) - as his assistant. After Cheri's parents and neighbors all get turned into Living Puppets, she and Unico team up to stop Kuruku.

Seeking advice from the Trojan Horse, Unico and Cheri learn that Kuruku is a puppet who was mistreated by his owners and discarded. He washed up at the edge of the world - where all unwanted "junk" ends up eventually - and was brought to life with the power of sunlight, determined to take revenge on the human race. With help from the Sphinx's daughter (voiced by Noriko Tsukase; named "Marusu" in Japanese but not given a proper name in the English version), Unico - who realizes that Kuruku is really just a lonely, friendless creature - is able to break Kuruku's spell, but since Kuruku's hatred was the only thing that kept him alive, Kuruku reverts to puppet form, and Cheri keeps him as a toy. Soon afterward, the West Wind finds Unico and spirits him away once again.

As with the first movie, the second movie's ending song (Do-Re-Mi-Fa Lullaby performed by Emiko Shiratori) became an instrumental in the Spanish and English dub. Katsue Miwa in the original version and Barbara Goodson in the English dub reprised their roles as Unico in this film.