In the vast Australian Outback, a talking koala named Ozzie Steven Kynman has learned to speak fluent English from Ngundi, a local Aboriginal boy living nearby. Hearing a legend about sentient animals, the ruthless toymaker Maxine “Max” Happy Joan Collins hires two rough-edged enforcers, Buzz Peter Rowley and Tank Ralf Moeller, to kidnap the clever animal and ship him to the United States to become the centerpiece of a shocking plan: create a race of talking koalas to revive Max’s failing company, Wonder Toys, just as Christmas approaches. Max enlists her lead scientist, Gilbert John Leigh, and his brain-transfer machine to transfer the koala’s intellect into a manufactured prototype that could change the toy market forever.
During a passenger flight, fate twists when Ozzie and a toy koala doll end up mixed in the bags with Justin Morton Spencer Breslin, a nine-year-old boy celebrating his birthday, whose mother Beth Morton Rachel Hunter works as a stewardess. When the switch is uncovered, Max’s goons race to recover the real Ozzie, setting off a tense chase that threads through the story. The disruption follows them back to Justin’s world and echoes through every corner of their lives.
Back home, Ozzie accidentally causes a kitchen mess at night, and Justin bears the blame, having to clean up. On the first day of school, Justin finally discovers Ozzie when he hears the koala talking in his room, and the two strike up an unlikely friendship. They try to convince Beth and their neighbor Charles Foster Bruce Allpress, the creator of the Avenger Force—Justin and Tank’s favorite superhero—that Ozzie is real, but they are met with disbelief and dismissal about the extraordinary claim.
Buzz and Tank track down Justin’s address and attempt several break-ins to retrieve Ozzie, but their efforts backfire in humorous and perilous ways, including an unexpected meeting between Tank and Foster that complicates the mission and leaves Buzz in pain more than once.
After a long pursuit that spans streets, bikes, and jet-skis from school to a busy restaurant, Buzz and Tank finally snatch Ozzie from Justin. Tank, now a conflicted ally who shares the Avenger Force obsession, promises Justin that no one will harm Ozzie before returning with Buzz to their boss. Police escort Ozzie home, and Justin is grounded and told to abandon his “imagination”—a decision that weighs heavily on him as he faces the disapproval of his mother.
Feeling alone and determined, Justin teams up with his friends Darryl Anton Tennet and Caitlin Rose McIver to rescue Ozzie from Wonder Toys that very night. The trio is captured and held while Max moves forward with her plan, but Tank intervenes, freeing the kids and Ozzie. The imminent brain-transfer attempt collapses when Max is shoved into the machine during a struggle, leaving her brain-fried and the authorities closing in.
With Max arrested and Buzz apprehended, Justin, his mother Beth, and Charles Foster arrive to support the rescue, and Tank earns a place in Foster’s new Avenger Force. The adventure ends with Justin returning to Australia with his mother and Foster while reuniting Ozzie with Ngundi in his village, a hopeful bridge between the boy, the koala, and their homeland.