It's a violently stormy night in the Hundred Acre Wood and the Pack Rats are secretly stealing lots of things, putting walnuts in place of what they take. In their refuge, one of the rats gets stuck in Owl's bell. The other two manage to get him out, but the bell had punctured a hole in their wall, causing all the water to flow into their home, flooding it. The rats escape on a duck floatie, but a tree branch punctures it, sending them flying all over the forest, eventually culminating in them thudding against the front door of Pooh's house. Pooh hears the noise and opens the door, and the rats rush inside. After a brief shock, Pooh allows the trio to stay, but tells them they are lucky to find someone who does, since they have a reputation for stealing. The three rodents are shocked by this statement, and explain that they don't steal, they just trade.
Pooh then tells them that walnuts are nice, but that it is wrong to take other peoples' things, and that in the moment, for example, he doesn't need any walnuts, what he needs is pots to stop the leaks. Upon hearing this, the Pack Rats have an idea.
Meanwhile, Piglet is pushing a huge bath tub full of water to stop the leaks, when the Pack Rats sneak in take pots from Piglet. And then, Rabbit and Gopher (who moved in due to the flooded tunnels). The gang are not very happy about it. Later, Pooh further explains to the rats that it is better to give than to take. As Pooh falls asleep, the rats rush off again with another idea.
Later in the night, Pooh wakes up to find his house completely empty. And Piglet wakes up to find Pooh's things in his house. When Pooh finds out about this, he explains that he is really sad that the rats took his things without asking, as he had been really nice to them, thinking that the Pack Rats had betrayed him.
Suddenly, Rabbit, Tigger, Piglet and Gopher arrive again, determined to catch the burglars. Pooh tries to defend the Pack Rats, stating that they're not thieves, really, they’re just confused. But the gang doesn't buy this. Rabbit captures the rats in a net, but he then opens the front door (ignoring Pooh's protests), causing the water to enter and flood Pooh's house, sweeping everyone away.
Later as the storm settles, Gopher enters the gang’s houses with a diving suit to discover that everybody’s stuff has disappeared, and finds only walnuts. Pooh becomes concerned that maybe the rats are thieves after all.
Later, the gang goes to Owl's house, the only place not flooded. Rabbit opens the closet door, only for all the gangs stuff to fall out and bury him and the others. Turns out, the rats have saved all the gang's stuff from the flood by putting them in Owl's closet. Pooh and his friends commemorate by giving the Pack Rats a party and a big cake.