Alfie and Annie Rose are at the Harvest Fair where Alfie enters his masterpiece: Motor Bike Man in the under-fives painting competition. As he checks out the prizes: a dinosaur book, a jigsaw puzzle and a bottle of green bubble bath, he spots a rather sad looking woolly sheep - the consolation prize. Alfie is delighted to win third prize, but dismayed to see that consolation prize winner Louise is not at all happy with the woolly sheep and dumps him crossly on the floor by her chair. Alfie knows that toys cannot understand, but secretly he thinks the sheep's feelings might be hurt. Then Alfie has a brilliant idea - one that makes everyone happy ...