Cap'n O.G. Readmore and his friends are holding their Friday Night Book Club meeting. Cap'n O.G. makes the mistake of underestimating the value of a good villain and ends up meeting Little Red Riding Hood as the new Big Bad Wolf.
Henry Bigg (voiced by Jimmy Keegan) goes to live with his greedy and heartless Uncle Augustus (voiced by Hal Smith) while his parents are lost in Africa; living in the crevices of the house are Tom and Lucy Little (voiced by Donavan Freberg and Bettina Bush) who soon discover that Augustus enslaves Henry and is planning on replacing his nephew's house with a shopping mall.
Augustus sees Grandpa and Dinky Little (voiced by Alvy Moore and Robert David Hall) and, mistaking them for toys, he locks them in a desk drawer; inside the drawer, Dinky and Grandpa discover that Augustus forged the documents in order to become Henry's legal guardian, as well as to steal and redevelop the Biggs' property.
After a series of adventures, Henry and the Littles find evidence of Augustus' plot to steal Henry's home; Augustus is arrested, the house is saved and Henry prepares to meet his rediscovered parents at the airport.