A little brown rabbit has drawn a rough, childish sketch of her dream home on a piece of legal paper. When she starts to dig, two of her new neighbors, a mole and a field mouse, both eagerly offer their assistance, showing off the elaborate blueprints and floor plans of burrows they constructed for their families. Embarrassed at the simplicity and inexperience of her own drawing, the rabbit hides it from them, pretends she has somewhere to be, and starts frantically digging deeper to get away from them, leaving them confused.
During the course of her dig, she keeps bursting in on other underground neighbors by accident, including some frogs who own a library, some hedgehog bakers who offer her muffins, some bathing newts who offer her towels, and some partying beetles and ants who think she is their entertainment for the evening. These incidents further her embarrassment, despite the fact none of the neighbors seem to mind her intrusions. After accidentally waking up a grumpy-sounding animal in a dark cave, she flees down to the bedrock. Finally away from the others, she attempts to widen the hole and form some sort of burrow, only to hit the water table. The released water starts to flood up her hole towards the neighbors' burrows.
In tears, the rabbit flees up to the dark cave and wakes the animal again, to explain her mistake. The scary-sounding animal turns out to be an easy-going, sleepy badger, who roars to summon the other neighbors. Together with the rabbit, they dig a side tunnel to divert the water to the surface, forming a spring and saving their homes. Grateful, the rabbit shows her drawing to the neighbors, who help her improve it logistically but still build a home like what she imagined, even down to the disco ball she drew in the bathroom.