At a knitting club in the city, McWolf teaches knitting for 47 students, but when he hears that a costume competition is in town, learns that a $10,000 cash prize is up for grabs, he finishes his class in 34 seconds flat. He tries to participate, but is told by a clerk, "No Wolves Allowed" and says that he'll call the police if McWolf attempts to participate. McWolf, refusing to accept this injustice, absconds the clerk's phone, and calls the police to arrest the clerk for not giving any wolves a fair chance to be in the costume competition. The police hang up on their way to arrest the phoneholder for abusing the 911 system, but McWolf thinks fast and secretly sneaks the phone in the clerk's pocket, just as the police arrive. Just as he's about to enter, he realizes that he'll need a costume. So he goes around town and makes a very messy costume, but when he sees Droopy and Dripple with his design of a scary costume, McWolf thinks he'll have a better chance of winning, tries to trade costumes with Dripple. He succeeds as the both of them wish each other the best of luck.
In the competition, out of 10,000 competitors who paid a $2.00 entry fee, Dripple and McWolf are the 2 finalists. Just as the champion is about to be decided, the Clerk, after escaping from jail, demands McWolf disqualified, but Droopy objects why. The clerk says McWolf summoned the police to remove the clerk who stood in the way between McWolf and the competition. Droopy stands up for McWolf and tells the competitiors to beat up the Clerk, in which they did. When Dripple won first prize, he turns it down and gives it to McWolf. McWolf accepts it, joyful tears in his eyes. He walks off, but falls off the stage, and the competitors, revealed to be all wolves after taking off their masks, take him to a hospital. Droopy commends his son for being generous.