In this story, the kind rabbit Uncle Wiggily, after delivering a pie for Nurse Jane, accidentally ruins his own silk hat in a puddle. He gets help from a Tailor Bird and makes a temporary fern hat while waiting. Soon after, he finds Lulu the duckling crying because her fancy party hat has also been ruined by mud right before Nannie Wagtail's party. Understanding her distress and that fixing her hat might take too long, Uncle Wiggily resourcefully helps Lulu craft a unique and beautiful hat out of ferns, similar to his temporary one. Lulu wears the fern hat to the party, where it's admired by everyone, becoming instantly fashionable and allowing her to enjoy the event, showcasing themes of kindness, problem-solving, and turning mishaps into successes.