The Greenit animals are curious about Big Boss. Pammee imagines Big Boss to be handsome, but Lemmee imagines him to be ugly. Yoohoo and his friends have different ideas about Big Boss and their imaginations go wild. Oops and Koops also begin to wonder about Big Boss and they secretly sneak into his office when he is out of the castle.

The magical spring water is drying up and the stream is no longer being replenished from the ground below. As the Greenit animals are worrying about the water, Grandfather Owl goes on to tell them a legend. The legend is that somewhere within the Friendly Forest there is a water balloon that is the root and source of the magical spring water.

Yoohoo and his friends find themselves in the Dragon Forest. They meet a few dragons and ask them for directions to the water balloon they are trying to find. However, the dragons know nothing about the water balloon and are bothered by Yoohoo and his friends.