Mischievous Skippy (Jackie Cooper) ignores his parents' rules, finding loopholes in their instructions. Dr. Skinner (Willard Robertson) is trying to tear down Shantytown, where the poor live. Skippy disobeys his father visits Shantytown regularly, befriending young Sooky (Robert Coogan). Sooky lives with his mother and dog, Penny. The family is too poor to afford a dog license. When Penny is captured by an evil dog catcher, Sooky and Skippy must find the money to get Penny back.