The episode begins in King Pig's bedroom where he was shown going to bed. He hugged his old teddy bear hard, but its arm came off. This caused him to cry out so loud that the entire Pig City was awoken. Later on, King Pig showed Foreman Pig what happened to his teddy bear, which he then formulated a solution for the broken toy.
In an alleyway of Pig City, Foreman Pig and King Pig were seen going to an alleyway where the solution lay. After gaining access through a steel door, they entered a place filled with plenty of soft toys. King Pig was mega happy and proceeded to bring all of them back, tossing away his broken teddy bear on his way home. Soon, a shadow loomed over the abandoned teddy bear.
Back in the castle, King Pig was sleeping but then has a horrifying nightmare of the teddy bear. This caused him so much panic that he proceeded to retrieve the teddy bear with Foreman Pig's help. They returned to where King Pig abandoned it, only to find Terence sitting on a nearby hill with the bear in his possession. King Pig ordered Foreman Pig to retrieve the teddy bear in any way. Soon, the SWAT pigs arrived and surrounded Terence with the news reporting on the event.
Foreman Pig first offered Terence a collection of soft toys, but the offer was rejected. Next, a huge cake, and then a performance played by a pianist, were both offered to Terence, but they were rejected too. Desperate to get back the teddy bear, King Pig gave Terence his crown, even though Foreman Pig objected. Not surprisingly, that plan failed anyway.
The Toy Seller Pig then suggested an idea that would work; offering Terence a special toy. Foreman Pig decided it was a good idea, and proceeded to give the sobbing King Pig the case holding onto the toy. King Pig thought this plan was suicidal, but Foreman insisted that he did it himself. Soon, the toy (which was a doll of Terence) was offered to Terence. At first, it seemed as though the offer was also rejected, until the pigs looked away, only to look back to see that Terence has disappeared, leaving the bear behind. Happy that his teddy bear was safe again, King Pig and the rest of Pig City celebrated the moment. Meanwhile, Terence and most of the flock could be seen sleeping near the eggs, with Terence enjoying his new toy.