Skarloey is often delayed as he has to take workmen to repair the line, and the Fat Controller is worried he may be late to the opening of the new station.. Harold has engine trouble, so the Fat Controller and Lady Hatt choose to ride the hot air balloon instead. The balloon's burner runs out of fuel, but they land in a tree next to Skarloey, who takes them to the grand opening.

The engines are celebrating May Day, and they are all decorated. James comes up with a "Best Dressed Engine" competition. Gordon wants to join, but sees decorations as undignified However, he becomes decorated anyway, though not in the way anyone expected.

Gordon is diverted onto a siding to a allow a sleek, silver engine to pass by. At the sheds, Gordon meets the splendid but arrogant streamliner named Spencer. Spencer is taking his owners, the Duke and Duchess, on a sightseeing trip of Sodor. Gordon advises Spencer to take on water, but he refuses to listen. This gets him into trouble as he runs out of water on Gordon's Hill.