Chance, Jacob, and Luke Rabbit are brothers and close friends with Hugh Squirrel. One morning, after breakfast, they go looking for their best pal. They check the pecan trees and oak trees. They look in all his favorite nut-hiding places. Still, they can't find him! Finally, they see him sitting by Turkey Creek with his head bowed, looking sad.
They ask Hugh Squirrel why he seems so unhappy, and it turns out, a dog chased him that very day. Hugh escaped, running through thick briars and brambles, but once he got away, he realized all the fur on his tail was gone. His tail is a proud part of being a squirrel and keeps him warm in winter. How will he survive, he wonders, and will everyone make fun of him?
Luckily, the rabbit brothers have an idea. They start saving up little pieces of their multi-colored fur and decide to prepare a gift for their good friend. Just in time for the weather to turn cold, they present their special treasure to Hugh Squirrel, and you'll never guess what it is. Suffice to say, Hugh is now the best-dressed squirrel in the forest!