Milo always goes to sleep with his beloved Raggy, a toy so old and loved that no one can remember what she is. But one stormy night Raggy gets lost. Milo tries to find her and he finds himself in the night market, the place where strange and wonderful creatures sell the stuff of dreams. Milo tries out all sorts of dream - like wonders but can't find Raggy until he starts counting some sheep and spots a curious creature amongst them - not only has he found his friend but he has discovered the secret of her origin.