In a magical faraway land, in a picturesque little village nestled among green meadows and rolling hills, lives a flock of carefree sheep. But their pastoral and stress-free life is interrupted when a pack of wolves sets up camp in the nearby ravine. In accordance with ancient traditions, the retiring pack leader Magra announces that his future successor must prove his right to lead by vanquishing his rivals. When the powerful and blood-thirsty Ragear steps forward, the only wolf brave enough to challenge him is Grey, the pack's favorite, but a hopeless goof ball. To become a leader and win back Bianca's love, Grey goes off into the woods, where he discovers a camp of Gypsy rabbits. The fortune-teller rabbit Mami gives him a magical "transmutation potion." Grey drinks the potion and goes back to the wolves' den, but finds out upon arrival that he has been transformed into... a ram!

This post-apocalyptic future story is based on the 8th century Saxon epic poem about the knight who battled a monster in a medieval castle. In this story, Beowulf is a wanderer who learns about a man-eating creature called Grendel which comes in the night to devour warriors trapped at the Outpost. The Outpost is ruled by Hrothgar. He has a daughter, whose husband may have been murdered by the Outpost's master of arms.