Little Toot is a young tugboat who sails around the New York harbors with his father. However, Little Toot is prone to mischief, and often gets into trouble.
One day, Little Toot tries to help his father tow a ship out to sea, but his efforts end up causing the ship to go out of control, and crash ashore. Because of these actions, Little Toot is banished from the harbor, and his Father has been reduced to hauling garbage barges. Out on the high seas, Little Toot soon encounters a raging storm, and amid the crashing waves, sees a ship in distress. He radios an S.O.S. to New York, but due to the waves, none of the ships can rush to help him.
Little Toot then tries with all his might, and ends up helping to tow the ship into port. He is regaled for his bravery, and his father beams with pride that his son seems to have grown up.