When Grandpa buys an old piece of carpet to practice his putting on, and it is a magic carpet, all manner of exciting things happen. Grandpa gathers his grandchildren and he takes them on a journey to find lost treasure. On a sailing ship, manned by a Parrot and a monkey, they sail off to find Mr. Rainbow. Grandpa as 'Captain' and the kids as seamen, they encounter adventures with dolphins, flying fish, a whale, and an eagle named Betsy. They do discover rich treasure; they also discover a type of treasure moth, dust, or rust can't decay or be stolen