 Jimmy runs away to be by himself after a bad day at school. He takes his flute down by the sea to relax. When he lays the flute down it become alive. (Turns to solid gold with diamond studs). Plotting to steal is a witch names Witchiepoo. Jimmy hops aboard a beautiful magic talking board that wants to take him out to sea. But the boat actually belonged to the Witch.. who turned the boat back into a black evil craft meant to trap Jimmy and bring him to her. But Jimmy escapes from the boat and make a swim for land. A Dragon named Pufnstuf was watching the whole event between Jimmy and the witch and he and the cops (two ants named Cling & clang) go to aid Jimmy. Jimmy ends up on the shores of Living island (every thing is alive) & is rescued by Pufnstuf & Co. The rest of the movie has the witch trying to get the magic flute in order to impress Boss Witch and her Friend Witch Hazel (Mama Cass Elliott), and Pufnstuf and Friends attempting to find ways to get Jimmy off of the island.