Given a job babysitting Donald (David Stollery), Jack (Lou Costello) tries reading the children's favourite 'Jack and the Beanstalk' to the youngster. Unable to pronounce the big words, Jack allows Donald to take over, with the result Jack falls asleep and begins to dream of a magical kingdom...Jack is a local farmer boy asked to take his family's last few coins and buy a cow at the local market. There he is hoodwinked by the butcher Mr. Dinkelpuss (Bud Abbott) into swapping the cow for some magic beans. He takes the beans home and plants them in the yard, awaking the next morning to find a giant beanstalk that reaches the sky has grown overnight. Jack and the butcher climb the beanstalk in search of the hen that lays golden eggs and the talking harp. They also rescue the kidnapped prince (James Alexander) and princess (Shaye Cogan) and battle with the evil giant (Buddy Baer) before making the land peaceful once again.