Poor Douglas, a young bear, goes from place to place looking for someone to give him a hug.

The Scallywags, a family of lazy, shiftless, mischief-making wolves, annoy all the other animals to the point where they quit getting invited to eat, play, or join in other activities, but when the wolves decide to improve themselves, they go too far in the other direction--until a full moon appears.

Douglas the bear accidently unravels the wool hat his father gave him and must figure out the right thing to do about the situation.