After Raggedy Ann lets Captain Contagious escape from his snow-filled bottle 'prison,' he kidnaps Marcella's new French doll Babette and takes her away to be his bride. To make amends, Raggedy Ann and her brother Andy how brave the dangers of the outside world to bring Babette back to the toy room before the new day dawns; but the outside world is a strange place, with even stranger denizens.