This is a salty old fisherman's tale about the Swordfish on CatDog's living-room wall. The teller of the tale is Cat, who's embellishing the story in order to impress TV star Tallulah. But Dog can't resist getting in on the act, and spins a wild yarn that Tallulah finds more interesting than Cat's. Cat, frustrated and outdone, finally reveals that the fish was actually purchased at a yard sale.
Cat suffers an identity crisis when a gang of beatnik alley-cats set up shop near the CatDog house. Seduced by their bongo music, he trades in his normal, prissy, finicky self to become the cool, hep "Scat Cat". His new alter-ego is much more laid back than the old Cat. In fact, he's so cool with everything he does that he refuses to clean the house, or even pay the bills. It's up to Dog to get the old Cat back that he once knew.
A rich blind fellow, Mr. Wolfington needs to hire a new seeing eye dog, so he agrees to hire Dog from CatDog. Cat is overjoyed because he finally is living in the lap of luxury as he always dreamed. CatDog overindulge and eat the finest foods, but something that they eat is just a little too rich for Dog, that he suffers a severe allergic reaction and can't see the next day when Mr. Wolfington needs him the most, to meet his friend in France.