Master Tubby runs away from home after being scolded by his parents. Noddy, Big Ears, Mr. Plod and Mr. Sparks form a search party and go to the forest to look for Master Tubby.
Noddy and Tessie Bear are surprised to see the moon in the pond and believe that it is a magical phenomenon of the night. But Big Ears clears this misconception.
The toy town folks complain that Noddy and his car played tricks on them during the night because they heard the car go "Harp! Harp!" However, Noddy along with Tessie bear and Big Ears set up a trap to catch the thief.
Noddy finds a furry tail in his car one morning and tries it on. Everybody finds it amusing as he goes around the town flaunting it and finding the person whose tail it is.
Noddy decides to help Mr. & Mrs. Straw by taking their hens to the market. Mr. Sparks gets a fire engine and helps Noddy get his car out of the farm pond and other errands with the hens.
Noddy borrows Big Ears' umbrella to drop Tessie Bear home. He refuses to leave the umbrella out of sight because Big Ears threatens to take his bell away otherwise.