It was Wicket Warrick's favorite season: the time of the Bright Tree Fête had arrived and the warriors' overnight trip was not far off. Wicket and Kneesaa gathered sunberries for Shodu, which Wicket hoped was the last thing he had to do before he could enjoy the carnival. But Wicket was let down; his mother asked him to take his sister Winda Warrick to the Tumble Bunny show. As an incentive for the reluctant Wicket, Shodu offered to let her son go on the overnight trip with the warriors.
So Wicket begrudgingly took Winda to the show, and there ran into Teebo and Latara, both of whom were forced to take their younger siblings too. They were also joined by Kneesaa, who was happy to bring her younger siblings along. But Wicket backed away from the woklings' show, and was instead interested in another attraction: Horville's Hut of Horrors. Kneesaa reminded Wicket of the agreement he had made with his mother.
Enticed by Horville's spooky spiel, Wicket very much wished to witness the horrors. Kneesa reminded him they would miss the Tumble Bunny show. Horville sought to entice Wicket and his friends by introducing Garth the snake eater, the hideous and bloodcurdling Ploob, and Bilbob the "Mystie" whom he claimed could predict the future. Though the younger woklings were scared, Latara opined that they looked so fake that the Hut of Horros could be fun.
So Wicket took a quick vote by show of hands to determine which show the Ewoks would see. Kneesaa and the younger woklings voted in favor of seeing the Tumble Bunnies while Wicket, Teebo, and Latara voted in favor of visiting the Hut of Horrors. But despite those favoring Horville's Hut being in the minority, Wicket declared the vote to be a landslide in their favor. Assuring Kneesaa that the woklings would have a good time, Wicket and the septet of Ewoks entered the hut.
Horville then admitted the Ewoks into the Hut of Horror. Teebo sensed a haunting music and saw a puffy, orange spotted creature. Malani expressed discomfort but Wicket claimed that the hut would be better than the Tumble Bunnies. Horville laughed in the background. The Hut of Horrors left the older children shaken up and the woklings traumatized to the point of tears. A gleeful Horville waved the Ewoks farewell and told them to tell their friends about the Hut of Horrors.
Wicket realized that because of the trouble he would be in with his mother, she would certainly not let him go on the warriors' trip now. But then, as they often did, an idea came to Wicket: they would have a sleepover at his hut for the woklings, who would forget about the horrors they had witnessed because of the amount of fun they would have. But the evening didn't go quite as planned; Wicket couldn't keep the woklings entertained, and so they continued to cry. Teebo attempted to cheer the woklings up by turning pebbles into sugar leaf taffy. When the taffy splattered over Teebo, the woklings laughed. Malani remarked that he resembled Garth the snake eater but that memory frightened the children even more.
When Wicket's family came home, Wicket tried to sweep the trouble under the rug by claiming they were having a sleepover and that the woklings were crying for more of Shodu's sunberry pie. Wicket's older brother Weechee talked about the time he had taken Willy to see the Hut of Horrors, and Shodu remarked on the nightmares Willy had had afterward. Kneesaa tried to convince Wicket to come clean but he was unwilling to forfeit the warrior's overnight.
Worried that the woklings would suffer the same fate, Teebo retrieved a machine of Master Logray's which would supposedly extract bad dreams from the woklings and store them within itself. When Latara asked where it would suck these bad dreams too, Teebo claimed that it would go somewhere. Wicket claimed it would be no problem while Knesaa kissed the woklings after tucking them in. That night, the nightmare machine ran while all the Ewoks slept, sucking away all their bad dreams and memories of the Hut of Horrors.
However, a faulty leg on the device's tripod gave out and the machine collapsed and fell right near Wicket's bed, "releasing" the bad dreams into his own mind. Wicket experienced a bizarre nightmare where he was pursued by Horville, then fell, then rode a balloon-creature up into the sky, was taunted by Kneesaa, laughed at by woklings, kicked around by Tumble Bunnies, eaten by a monster, grounded by his mother, and chained up as an attraction at Horville's Hut.
Finally, Shodu woke Wicket from his nightmare. Realizing his cover was blown, Wicket confessed to his mother that he had taken the woklings to the Hut of Horrors, not the Tumble Bunny show. Shodu decided that he would not be allowed to go on the warriors' trip this year, because he instead had something else to do: take over the Tumble Bunny trainer's job and host ten Tumble Bunny shows himself.
Teebo remarked that the Tumble Bunnies were not so bad after all. Kneesaa replied that she didn't think that Wicket agree. Wicket tried to comfort himself by saying he had finished five shows and that there were only five more to go.