The Ewoks are relaxing in the quiet deep forest, when they suddenly hear the Duloks, which are chasing a mountain goat. They chase the goat quite a bit, but then a 'red ghost' appears, and scares them away. The Ewoks go to the goat, still tied up in ropes, and get her loose. But the 'red ghost' thinks that they are trying to hurt the goat. She gives out some battle cries, and the Ewoks flee. The Ewoks return to the village, and Wicket tells Kneesaa about the 'red ghost'. It was actually an Ewok with red fur. Kneesaa runs to her hut, crying, and tells Wicket what happened. Kneesaa (just a little baby) and her mother and her red-furred sister called Asha, were out walking through the forest. A monster attacks the family, and Kneesaa's mother died trying to fight off the monster, while Asha disappeared.
Malani is busy attempting to paint a portrait of Baga but things don't exactly go well for the little wokling and she's ready to give up. Wicket reassures her not to give up on her dreams and relates the story about how he almost gave up on wanting to become a warrior.... Teebo has just past his test to become a Wizard's apprentice, Kneesaa passes her test to rule the village one day, and Latara has shown her ability in making ""designer"" hoods. Now the weight rests on Wicket successfully passing his warrior test but he is so nervous that his friends assist with Teebo asking the help of a lucksprite. Problem is, this creature is a bad-lucksprite and with his help, Wicket fails the test miserably. Given a new career choice of being a Bordock stable sweeper, Wicket gives up on becoming a warrior but his friends are determined to make things right.
Wicket is annoyed that his mother has agreed to look after a marsupial-type creature named Norky for the day. Wicket expresses to Teebo that everyone he stays over he gets Wicket into trouble and sure enough, Teebo is quick to find out - as is Kneesaa and Latara - exactly what the Ewok warrior means. Of course, to the elder Ewoks, Norky appears to be a well-behaved, polite little creature but the Woklings know better. Planning a trick, they send Norky off to the 'Vacant Valley' having him believe there is treasure but the Woklings soon learn that the place they sent him is in a state of dangerous adjustment......
Kneesaa isn't exactly the best host for a party. Basically she'll do something like show her acorn collection and her guests would fall asleep. So when Chief Chirpa informs his daughter that she is to hold a party for the arrival of Prince Delvy not even Kneesaa believes she'll be able to entertain but Latara has different ideas. Their party doesn't go exactly to plan however when a group of bandits - known as the Pugs - rudely interupt and worse yet, the Ewoks mistake the Pug leader as Prince Delvy.
The classic tale of you loving someone but them loving someone else is brought up in this episode as the Ewok Games begin and Wicket falls for the female warrior, Chirita. Meanwhile, Teebo's younger sister, Malani, has grown quite fond of Wicket and attempts to win his heart by proving she's a warrior. But when she is convined to steal the Sunstar under the advise of two slug-type creatures, she fails to see that the two are not assisting her in getting Wicket's affections but rather using the Sunstar to turn the forest moon of Endor into their own paradise - full of mud!