Old Bear and his friends are playing in the garden. As Bramwell is making pirate hats with scraps of newspaper, the toys think it would be a good idea to have a boat race. First of all, the toys have to build their boats, (although Sailor already has his own) then, when they are ready, they launch them in the stream and the race begins. It doesn't go quite according to plan but a spectacular air/stream rescue by Rabbit saves the day and it isn't the biggest boat that wins the race.