Charlie Chalk lands on Merrytwit and meets Edward, Trader Jones, Captain Mildred, Arnold and Lewis T. Duck. They all agree that the first thing Charlie must do is build a house but choosing the best location proves difficult.
Charlie finds a treasure map and he, Lewis and Arnold decide to go looking for the treasure but become confused and fall out with each other. Arnold ends up finding the treasure after walking through the night.
In the middle of the coconut harvest, Trader Jones makes a wish and, before anyone knows what has happened, Mary the Hover Fairy appears. She grants Trader's wish but he discovers that the magic may not be the best way to harvest coconuts.
Charlie unfortunately has to cancel the big expedition to find the Bye Bye Beast because he has got the sneezes. But when Trader Jones' cure for the dread disease happens to include the elusive Beast's favourite food, Charlie's luck changes.
Litterbug, on his constant quest for tidiness, picks up Mary the Hover Fairy's wand when she puts it down half way through a spell. When the poor creature is chased by a crowd of jumping bananas, he finds out that there could be such a thing as being too tidy.
One day Arnold claims that the mountain moaned and no one believes him. So Charlie and Lewis decide to set off and see why the mountain moans. The mountain leads them to a new friend.
It is inspection day on Merrytwit and Captain Mildred decides it is time lazy Edward took some exercise.
Charlie is helping Trader Jones beach combing when they stumble upon a cookery book. Trader decides to prepare the first Merrytwit feast, but when coconuts and bananas are the only ingredients available, the feast does not quite work out as planned.
Lewis T. Duck, who is always right, is dismayed to discover that there are no roads on Merrytwit. So he decides to build one.
Captain Mildred is becoming bored of her day to day life of living on her boat she calls a home, so she decided to take her best friend Mary the Hover Fairy with her on a short holiday.
The cave monster Bert is having a boring day, he has run out of interesting things to do in Merrytwit, but his day soon livens up when his friends plan a day full of fun.
It will soon be Litterbug's birthday; Charlie and the other inhabitants of Merrytwit cannot think of a gift to give Litterbug for his birthday, they decide to explore the island for the perfect gift.
Although Charlie is enjoying his new life on Merrytwit, he also misses the circus and his old friends back home, so Charlie decides to say goodbye to Merrytwit and his newfound friends and go back to his old life as a clown, but in the end decides to stay on Merrytwit.
