Blue Pixie Dust is used to replenish the Pixie Dust Tree so that it will keep producing Pixie Dust. Without it, the tree will wither and the dust will cease to flow.Once every eight years, a Blue Harvest Moon rises in Pixie Hollow. When its light shines through a 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. A portion of the dust is collected and kept in a safe at the Pixie Dust Distribution Depot, and thereafter twenty-six grains of blue pixie dust are administered to the Pixie Dust Tree daily.
Blue pixie dust also acts as an amplifier to other dusts - a single grain of blue 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.