- “It's sparkling like a thousand sapphires!”
- ―James Hook about the Blue Pixie Dust
Blue Pixie Dust is used to replenish the Pixie Dust Tree so that it will keep producing Pixie Dust. Without it, the tree will weaken and the dust will cease to flow. Once every eight years, the Blue Harvest Moon rises in Pixie Hollow. When its light shines through the Moonstone at 90°, the light is transmuted into Blue Pixie Dust. The dust is then collected by Dust-talent fairies who sprinkle most of it on the Pixie Dust Tree. The Blue Pixie Dust has flight properties also.
It may be noted that the grains of Blue Pixie Dust are larger than ordinary grains of their counterpart, and can be split, as seen in The Pirate Fairy.
The portion of the dust is collected by Dust-talent fairies and kept in a safe at the Pixie Dust Depot, and thereafter twenty-six grains of Blue Pixie Dust are administered to the Pixie Dust Tree when it is already weakening and stopping by to produce Pixie Dust.
Blue Pixie Dust also acts as an amplifier to other dusts. A single grain of Blue Pixie Dust thrown onto a dust-sprinkled James Hook made the dust on him so powerful that he could no longer control his flight. It's also a vital component in Pixie Dust Alchemy.