Eloise Larkin, Shaye Cogan and her fiancé Arthur, James Alexander, are eager to attend a rehearsal for a play, but Eloise's lively kid brother Donald complicates everything. To find a babysitter, Eloise calls the Cosman Employment Agency, where Mr. Dinkel, Bud Abbott, and Jack, Lou Costello, are looking for work. Jack flirts with Polly, Dorothy Ford, but Polly’s policeman boyfriend arrives and puts an end to the moment. Polly assigns Dinkel and Jack to watch Donald, yet their bedtime routine goes awry when they attempt to read the fairy tale “Jack and the Beanstalk.” Jack stumbles over the big words, so Donald takes over the reading, a playful role-reversal that ends with Jack falling asleep as Donald reads. In that moment, Jack’s dreams transport him into the story itself, and he finds himself becoming the young Jack of the tale.
In the dream, a giant Buddy Baer rules a castle in the sky, having stolen the kingdom’s food and the crown jewels. The kingdom faces a forced marriage: the princess must wed a neighboring prince she has never met. Jack is asked to make sacrifices as part of the quest. His mother sends him to sell their beloved cow Henry to the local butcher, Mr. Dinklepuss, for five “magic” beans. On the way home, Jack encounters the prince, who is disguised as a troubador, James Alexander, and is briefly kidnapped by the giant. The greedy Mr. Dinklepuss trades Jack the beans for Henry, sealing the fateful bargain. When Jack returns, he learns that Nellie, the golden-egg-laying hen, has also been taken by the giant.
Tension rises as Jack’s mother, frustrated with the beans, urges him to plant them. Overnight, a colossal beanstalk shoots up, reaching into the clouds. Jack climbs toward the sky kingdom to rescue Nellie and the princess, who is Eloise in the dream, Shaye Cogan now revealed as the royal captive. Dinklepuss, still involved, joins Jack on the ascent, drawn by the chance to seize more treasure. At the top, Jack, Nellie, the princess, and the captured prince and their plight are thrust into danger as the giant imprisons them in his castle. The princess falls for the disguised prince, only to discover his true identity as the very same royal figure she has been promised to wed.
The giant then employs Dinklepuss to manage his castle, but Jack sabotages the plan by mixing gunpowder with the chicken feed, causing a dramatic omelette explosion that shocks the giant. With the help of Polly, the housekeeper who befriends the group, they escape over the castle wall, bringing Nellie and some of the giant’s stolen gems with them. They flee down the beanstalk as the giant gives chase. In the fray, Nellie slips from Dinklepuss’s grip and falls into the arms of Jack’s mother below, while the gems rain down on the town’s desperate residents. Jack and the others reach solid ground, and Jack bravely lops the beanstalk, sending the giant plummeting to his death. The villagers celebrate around the hole left by the fallen giant, dancing in relief and triumph.
Just as the king is about to reward Jack for his bravery, reality intrudes: Donald breaks a vase over Jack’s head, jolting him back to wakefulness, and Dinkel delivers a second blow to ensure he remains in the dream. Eloise and Arthur return from rehearsal, transformed back into their real-world counterparts, while Jack greets them as the bookish hero and heroine. The dream concludes with Jack dancing into the night, a whimsical reminder of courage, family bonds, and the power of imagination that blends the ordinary with the extraordinary.
