Henry's parents are lost in Africa, so he must live with his greedy and heartless Uncle Augustus. In the crevices of the house live the "Littles" kind, elf-like creatures. August enslaves Henry and wants to tear down his house to build a shopping center. Grandpa Little cares for Tom and Lucy, the Littles' children. Tom befriends a vicious cat by removing a splinter from his paw. After a series of adventures, the Littles and Henry get evidence of Augustus' plot to steal Henry's home. Augustus is arrested, the house is saved, and all ends well.