Mumfie is a special little elephant who lives all alone. One morning, Mumfie sets off to find an adventure and meets some new friends: Scarecrow and Pinkey, a piglet with wings. The three friends set off for an island towards the seaside where they hope to find Pinkey's mother.
The mountain on the beach surprises Mumfie when it comes to life. Mumfie and his friends soon find out that there is more to Whale than meets the eye. Whale gives the three friends a ride to the island where Pinkey's mother is being held prisoner.
The island is a dark, dangerous place and despite a warning from the mysterious Black Cat, Mumfie continues to dance and sing and gets swept away on the wind, deep below the forest. Mumfie's spirits are soon lifted when he finds Pinkey's mother.
Mumfie is captured by Bristle, the keeper of the Rule Book, and is put to work dusting the wicked Secretary's strange bottle collection. While dusting, Mumfie makes a new friend, Napoleon Jones the Raven and discovers the wonders of the Queen of Night's special jewel.
Scarecrow and Pinkey are searching for Mumfie. Along the way, they encounter the evil Secretary and the beautiful Queen of Night. After learning to skate across the palace floor, they are reunited with Mumfie.
Mumfie and Scarecrow fly away from the island using the Queen's magic umbrella, towards Whale. Disaster strikes! Aboard Whale, Mrs. Admiral is telling how Mr. Admiral has been captured by pirates. The pirates spot Whale and the chase is on.
Mumfie, Scarecrow, and Mrs. Admiral get separated under the sea. Scarecrow thinks that Mumfie has been eaten by a shark and when he finds Mrs. Admiral, he breaks the sad news to her. Scarecrow is overjoyed when he sees what is behind the big pile of mashed potatoes.
Mumfie and Scarecrow decide to enter the pirate cave, and see mysterious flashes of light coming from an unknown place. An accidental trip and fall separates the pair, but with the help of a new friend, the Electric Eel, the two are reunited and find where Mr. Admiral is being held captive.
Mumfie and Scarecrow go head to head against Davy Jones and his pirate crew, and ask to find the Admiral. They find him in the washing room washing the clothes the pirates wear. Meanwhile, Whale has been trapped in a net and Eel uses her electric powers to free him.
Mumfie and Scarecrow are held captive inside the same room as Mr. Admiral and decide to write a message to Napoleon Jones asking for help. Eel and Pinkey then decide to team up together to deliver it safely to the island. After Pinkey takes the letter to Napoleon, Bristle chases after them and Napoleon uses his wings for the first time in years. While this is happening, Mumfie and Scarecrow decide to disguise as a new crew member as a method of escape.
Scarecrow and Mumfie's disguise seems to fool Nasty Nate and his crew, sounding and looking like a pirate. Davy Jones realizes that the new pirate is actually wearing one of his favorite coats. As this is happening, Mumfie finds the Queen's Jewel in Davy Jones' pocket and is able to retrieve it. The pirates then chase after Mumfie, Scarecrow and The Admiral, but are eventually captured. The Admirals then get reunited.
The Secretary's island is in danger, and Mumfie has to save it. Unfortunatley, the Black Cat fools him into jumping down into a peaceful meadow-just for him to be sent to The Secretary of Night's holding cell for trying to bring peace and happiness to the island! That is until someone Mumfie knows very well comes to his rescue...
Mumfie, Scarecrow and Pinkey find The Queen's Thimble in a paperweight, but will The Secretary get it first, or will Mumfie and friends bring the story it's happy ending?
When the magical bringer of snow, the Snowbird, is in trouble, it's up to Mumfie and his friends Scarecrow and Pinkey to save the day and guarantee a wonderful white Christmas for everyone.