Written by Jimmy Webb, ©1982
Found on The Last Unicorn Soundtrack and Your Move (French import only).

In the sea the fish have learned to fly
On a moonlit night on wings of silver
As the enchanted stars sail serenely by
Do they know where do unicorns go
Where winged horses fly
Narwhales lost at sea and never seen again
Go, go and ask the magpie
Where do unicorns go

In the trees the birds have learned to speak
Gaily colored they keep their secrets
In a parade of clouds playing hide and seek
Do they know where do unicorns go
Where winged horses fly
Narwhales lost at sea and never seen again
Does myth and mystery lie
Where the unicorns go