Danny Dingo claims to Blinky and his friends that a monster dwells in a lake. Danny gets Meatball to be the monster in a film to deliver evidence to Blinky. However Flap fools the dingoes with his own monster.
Danny Dingo develops a plan to scare Blinky and his friends by making them believe that there is a monster living in the lake. However, Blinky demands to see proof that it exists. Danny rises to the challenge and goes about dressing Meatball up as a monster. Will Blinky fall for the hoax? And is there actually a real monster living in the lake?