Jimmy is a happy, normal boy leading a very usual life until he literally stumbles onto a gaily colored talking boat which offers to take him on a trip to Living Island. Rather than practice his flute lesson, Jimmy eagerly jumps on the boat. Immediately, his flute, named Freddie, becomes alive and animated, turns to a rich golden hue, and glistening diamonds appear on its sides. As soon as the boat moves out to sea, a quizzical and not-so-evil witch, Witchiepoo, flying on her Vroom Broom, spies the flute and decides that she must have it. She commands the boat to change its course and take Jimmy and Freddie to the shore near her evil castle. Jimmy and Freddie thwart her plans by swimming ashore and running through the forest where they come upon the cave like home of Living Island's mayor, a dragonesque character named H. R. Pufnstuf where they are welcomed into the sanctuary of his cave.