While on a tropical island, Courage and Muriel discover an underwater city made of coral. There, they befriend the citizens. Meanwhile, Eustace informs his mother that there are small creatures living in the coral. She decides that the coral there can make fine wigs and sets off to destroy the coral city and evict the creatures of their coral for her wig factory. A strange elderly man named Conway moves in with Courage and his owners. He changes their lives when he assists them to live in a life of filth, causing a potential bio-hazard.