Little Red Riding Hood is a kind-hearted girl on her way to help her sick grandmother. Her mother warns her not to speak to strangers and to stay on the path as she travels through the forest, but a smooth-talking wolf makes Little Red Riding Hood forget her promise. While Little Red Riding Hood gathers flowers for her grandmother, the wolf uses her delay to devour the grandmother and set a trap for Little Red Riding Hood.

The miller Elmo and his son Mort have a problem—instead of standing up for what they know is right, they follow everyone else’s opinions. When a farmer complains that Elmo is overworking the donkey, Elmo and Mort mill the grain. When others complain that his prices are too high, Elmo reduces the price, even if he’s losing money. When a friend suggests Mort steal apples with him, Mort goes along with the plan.

The bear cubs Stubby and Prissy can’t seem to agree on anything—not even on who should close the door while playing a game. Disgusted, their forest friends walk out because of their bickering. The cubs finally decide to settle the issue with a most outrageous game of “You move, you lose.” However, two raccoon burglars show up for an unforgettable game of their own.

The proud emperor loves to parade before his people with beautiful clothes. When a court official suggests paying the soldiers more money so they don’t have to beg for food, the furious emperor is ready to throw him in jail.