When Fred and his evil army start destroying the magic forest, Waldo and Woof are sent to the rescue. The two travelers are sent by Wizard Whitebeard to find a magic fruit that will help protect and restore the forest. With the aide of Queen Emeralda, the Green Ladies and the Mud Men, Waldo sets out to help restore nature from the grasp of the evil "bucket-heads". Meanwhile, Odlaw tries to impress the evil leader Fred and join his army in order to help him finally get Waldo, and his magic walking stick. Finally, the two sides collide in a climatic battle over the magical forest. In the end, Waldo and his forest friend prevail over the evil army and the woods are restored.