This is the story of the heartless mother whose burdens are such that she would be rid of her two children. The henpecked father is compelled to take them to the woods and there lose them. Gretel drops bread-crumbs to find her way home, but wild-fowl eat the crumbs and they are truly lost. The babes wander to the home of a witch, who would fatten them up to make ginger-bread of them. As they are about to be thrown into the blazing furnace Peggy outwits the witch, and, in turn, the witch is thrust into the roaring flames, as the mother, repentant, heads the neighbors in the work of rescue.

A rich boy gets his well-deserved punishment.

The Hey Fellas gang builds a firehouse out of junkyard parts.

The 'secretary' of a busy newspaperman is revealed to be a cherubic small child, Baby Peggy. When a rich woman's pearl necklace is stolen, Baby Peggy's employer promises to make the reporter who cracks the case Editor-in-Chief. The little girl seizes the opportunity, and - several disguises and chases later, with the grudging aid of the office-boy - duly returns with the jewels to achieve promotion, with all the adults scurrying to serve her.

The movie is set eight years after the events of On Our Selection. The Rudd family are now more prosperous, but Dad is as autocratic as ever. His children are grown up and the baby twins are up to mischief Dave is married and tries to do as little work as possible, but is forced to do so by his wife and domineering mother.