Raggedy Ann and the rest of the toys in Marcella’s playroom are curious about a package that has just arrived. They look inside and discover it contains a beautiful French doll. The haughty girl, named Babette, is horrified by her new home. She wants to go back to Paris. Meanwhile, the Captain, a pirate in a snow globe, sees Babette and falls in love. He tricks Raggedy Ann into freeing him and then immediately kidnaps Babette and sails out the window. Raggedy Ann and Andy leave the playroom to rescue her. Their adventure includes meeting a blue camel with wrinkled knees; the Greedy, a living, self-consuming taffy pit filled with every candy and confection known to the palate; King Coo Coo and the Loonie Knight, who love to laugh, but only at the expense of others; and Gazooks, a tickle monster hired to give King Coo Coo the last laugh. Finally, they find the Captain; but the damsel in distress proves more capable than they had imagined.