A never-before-seen woodsman mysteriously appears aboard a submarine that's been trapped deep under water for months with an unstable cargo. As the terrified crew make their way through the corridors of the doomed vessel, they find themselves on a voyage into the origins of their darkest fears.

The candy recipes of the goody shops have been stolen by the Goody Bandit, and many animals are out of business. While the police are chasing the criminal, there is a mess at Granny's house involving Little Red Hiding Hood, The Wolf, The Woodsman and Granny, disturbing the peace in the forest. They are all arrested by the impatient Chief Grizzly. Detective Nicky Flipper is in charge of the investigation, and each accused gives his/her own version of the incident. Flipper uses the information to disclose the identity of the evil Goody Bandit.