Ham is so afraid of a pursuing wolf that he becomes paranoid and thinks Grimm, Attila, and Mother Goose are the wolf in disguise. Mother Goose writes a story about a nefarious sheep who persuades other sheep to become criminals.
Grimm and Attila think Mother Goose wants to dispose them over a broken ornament, thus they run away from home. A new law has passed where outgoing dogs need to have leashes, but Grimm goes out leashless, and gets chased by a dog catcher.
A nefarious witch morphs Mother Goose into a frog in retribution for writing unflattering stories about witches. Mother Goose has to figure a way to bathe Grimmy who dislikes baths.
