Michael Brooks returns from Australia with a dog that immediately bonds with his young daughter Laney. However, Michael later buys Laney a very special teddy bear from a friend in Chinatown. Aussie gets jealous and manages to 'lose' Ted on the streets of their San Francisco hometown. Then doggie guilt sets in and Aussie hunts to find Ted, only to have the Brooks' move out to their aunt's farm in the meantime.