S.D. Kluger from Santa Claus is Comin' to Town (voiced by Fred Astaire) answers questions concerning the origins of the Easter Bunny, better known as Sunny (voiced by Skip Hinnant), who was adopted by the citizens of Kidville, a village where only children live; and how he helped bring happiness to children, starting with young King Bruce the Frail, who rules a nearby, gloomy town called Town. However, the King's aunt, the evil Duchess Lily Longtooth also reigns as regent, until such time as young Bruce comes of age. Along the way, he befriends Hallaluah Jones and Gadzooks the Bear.