A young boy, Fred Smith, is sent to live in a town he's never heard of with an aunt and uncle he never knew existed. His uncle, a rotund man so large that he is trapped inside the living room, dislikes children and all members of the Smith family. Fred strikes up a friendship with an Old English Sheepdog that happens to be passing the house and they become inseparable. Starting school mid-term, Fred is picked on and bullied. He deals with it by winning over the bullies with the incredible sweets he makes. The sweets are so good, the leader of the bullies sells some of them in the school but when caught, puts the blame on Fred. An encounter with the local butcher and a number of strange happenings change Fred's life. He is sure the dog is at the center of everything. But how can that be?