Jimmy (Jack Wild) gets kicked out of the school band for tripping and breaking a drum kit. He then ventures on a journey with his newly magical talking flute Freddy. Orchestrated by Witchiepoo, (Billie Hayes), he ends up on an evil boat which takes him to Living Island, an island where everything is alive. Once there, he befriends many of the island's inhabitants led by Mayor H.R. Pufnstuf (voiced by Al Melvin), but the evil Witchiepoo is determined to steal Freddy the Flute away from him in order to impress the visiting Witches' Council and the Boss Witch (Martha Raye) enough to win the Witch of the Year Award.