Bluey is at school with her friends, listening to Calypso tell a story about a gnome. When she finishes, Calypso breaks into a song, and the kids get up to play. Most of them scatter to start their various games, but Pretzel just flops down on a rug and lets out a groan. Calypso sits down at a nearby table and tries to entice Pretzel with a stick, hoping it will spark some inspiration, but he’s not interested in playing anything.
Honey comes over to Calypso and asks if she can have a gnome for the village she’s building. This sets Calypso off on a tour of the room, visiting the different kids and their activities. She stops by Honey’s village, which is just a tree and a hill, and suggests that the gnome will need a place to sleep. Then she visits Bluey’s fish and chips shop, where they’ve run out of fish, and lets the kids know about the new shop. She also visits Chloe, Coco, and Indy, who are playing with baby dolls in a crowded play house, and Rusty, who is building a house with boards and wooden supports. Calypso lets Rusty know that Indy is looking for a new place to live, and she also checks in with the Terriers, who are building a Roman fort to protect the kingdom.
As the playtime continues, Calypso sits back down with Pretzel, who is still sighing on the floor. Honey comes back to show off her updated village, which now includes a hut for the gnome to sleep in. Calypso suggests that the gnome will also need a forest to take walks in. The playtime evolves, with Indy moving out of the play house and looking for a new place to live. She hands her baby to Rusty and takes a job as a waitress at Bluey’s fish and chips shop to earn money for rent. She even gets to serve tea to Coco and Chloe. Eventually, Indy has an idea to sell chips to the Roman army, and Bluey loads her up with a stack of pillows to represent the sacks of chips. As Indy tries to deliver the chips, the Terriers form a shield wall to protect the village, and Indy bonks into their shields, stopping her in her tracks. The Terriers offer her protection again, but she still doesn’t need it.
In the end, Pretzel starts to get into the play, picking up the stick and pretending to fish, and Calypso joins him, suggesting that when the fish bite, they can take them to the chip shop that’s run out of fish.
