The story tells of a young boy called Jeremiah Kincaid (Bobby Driscoll) who lives on a farm in 1903, helping his granny (Beulah Bondi) with the up-keep of the place. He comes to own a young black lamb named Danny, and dreams of taking the lamb to the County Fair - though granny advises him not to bother, since there's no call for black wool. Young Jeremiah is visited by some animated creatures who convince him to follow his heart...