Lee is enjoying his first ever sleepover at Kipper’s house when he realises that his teddy has gone missing. Determined to find it, he begins scouting round the house and encounters Biff and Chip behaving very suspiciously, whispering about something under the stairs. Spooky shadows and strange noises convince Lee that Biff and Chip must be hiding a monster, and that it has taken his teddy bear. With Kipper’s help, Lee must find the courage to face the monster and get his beloved teddy back.