Blinky's gang find a hot-air balloon lodged in a tree. Once they get it free, they drift on it. They finally make it to Greenpatch, but can't land. Mr. Wombat receives Blinky's note and a rescue party starts after them with Ms. Magpie scouting for them and getting them out of the balloon. Then Greenpatch celebrates with a welcome back party.
Nutsy thinks no-one remembers her birthday. Flap stumbles across a circus, but the overworked performers are under sickness pretense, so Blinky's Gang decide to do their own performance specially for Nutsy. Out of envy, the other performers get in the show but after the show, they come to a new agreement from Captain Possum.
During a storm Nutsy tells her friends a fairy tale story about 2 Koalas named Hansel and Gretel who get lost in the woods and meet other fairy tale friends and come across a candy house lived in by a wicked mouse witch, who later sends them down a well to dig for water, but they manage to get her wand and broomstick.
Continuing their camping trip, Blinky's gang slip away to explore a mountain mine. They get trapped after a collapse. As they try to find a way out, a creepy Goanna frightens and chases them through tunnels and down a mine shaft in carts. Once outside the mine and down a river, Blinky's gang are very far and lost from Greenpatch.
Mrs. Echidna has finally had enough of Blinky's mischief and leaves to join her sister. Mrs. Echidna's absence allows termites to freely feed on Greenpatch's trees causing the birds to emigrate. Mrs. Echidna is too busy to return to Greenpatch, so Blinky persuades Mr. Echidna to come. Once the termite problem is taken care of, Mr. Koala arranges Mr. Echidna's wife to come.
Greenpatch is running a baby show. Blinky and his friends volunteer to babysit Mrs. Spotty's six babies and take them to baby show. When the biggest baby Rudolf goes missing, Flap unwillingly takes his place. Mrs. Spotty finds Rudolf and as she goes to find Blinky, Blinky and his friends escape with the first prize.