After a bad day at school, Jimmy (Jack Wild) runs to the shore where he can play his flute in solitude. But when he lays the flute down, it suddenly comes to life! Jimmy is lured aboard a magical talking boat sent by an evil witch named Witchiepoo (Billie Hayes). Soon Jimmy uncovers the truth. He is to be made Witchiepoo's prisoner and the flute, now made of gold and diamond studded, will be hers! But the entire escapade is seen by a dragon named H.R. Pufnstuf. When he and his friends Cling & Clang come to the rescue, Jimmy's adventures on Living Island (where Everything is alive) are about to begin.