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.

Big Boss is angry because all his plans to take over Greenit have failed. Therefore, he decides to take things into his own hands! In order to visit the village, Big Boss disguises himself as a clown. In Greenit, he wins the favor of all the animals and shows them a video clip of 'Fun Fun Land,' and persuades them to move there.