It is a typical day in the life of Ivor the Engine. Ivor delivers Coal to Grumbly Gasworks, tomatoes to Mr Davy and Fish to Mrs Thomas. Ivor also goes to choir practice.

Jones and Ivor bring back a package, which is supposedly a hat for Mrs Porty, but Jones and Dai discover it's a new telescope cover for Professor Longfellow and go home for the night. In the morning, the package has gone...

A silly sheep has got itself stuck on a ledge in the hills. Jones tries to rescue it but ends up stuck himself. He ends up sending Ivor and Old Nell, the sheepdog, to get help.

Ivor has to deliver some pigeons to Mr Brangwyn. Thanks to Evans the Song, they end up escaping and on Miss Pryce's roof. There follow some amusing attempts to get them down.

Going past Smoke Hill, an extinct volcano, Jones and Ivor spot smoke coming from the top. Jones discovers a fire inside the hill and a strange egg. He puts it in Ivor's firebox to keep it warm. Mr Dinwiddy doesn't have any idea what it is so they go off to choir practice. During the practice there seems to be a voice coming from inside Ivor.

Dai Station isn't too pleased about Ivor's new friend, Idris, travelling in his firebox. He orders him into a box, which catches fire and then scares him off trying to extinguish it.

After choir practice Idris helps out Mrs Thomas, whose fish fryer is on the blink. While everyone is enjoying a fish supper, Evans the Song spots a worrying article in his bit of newspaper.

Idris is still missing when the representative of the antiquarian society arrives to interview Jones about him. After a few embarrassments, Jones and Ivor find Idris in the most obvious place.

A rock on the line turns out to be a wounded elephant. Jones and Ivor take the elephant, named Alice, and her keeper to Mr Hugh's gasworks to recuperate.

Jones and Evans the Song have great difficulty bathing Alice and giving her medicine.

Mr Brangwyn provides a boot for Alice to wear until her foot heals.

Alice's circus, run by Mr Charlie Banger, is coming to Grumbly town. Bani and Alice are very excited.

Jones and Dai are relaxing when they spot some strange objects in the sky. The source appears to be Mr Dinwiddy's goldmine.

Mrs Porty shows Jones and Ivor the fox cubs in the wood near her house. As Ivor and Jones go to deliver Mrs Porty's Hat for the Institute Prize Giving, they save the fox from the fox hunt, by hiding her in the hat box.

Jones is cleaning Ivor when they are called off on an emergency - Mr Dinwiddy needs his new boots. Jones leaves Bluebell the Donkey holding the bucket. She follows them all the way to the goldmine, so Jones and Mr Dinwiddy arrange for a mode of transport.

Dai Station isn't too keen on Bluebell riding around with Ivor, but she soon proves her worth when the engine is derailed.

Mr Williams of head office breaks the terrible news to Jones and Dai that the railway is to be sold and Ivor might have to do shunting at Pontypool. Then Mr Dinwiddy has a brainwave.

After Mr Dinwiddy's idea falling through, Mrs Porty comes up with a solution to the railway being sold.

One morning Jones and Ivor spot some smoke beside the railway line. It turns out to be Idris the Dragon. They rescue him and he explains that Smoke Hill is now extinct.

Jones and Dai are not getting anywhere trying to find a home for Idris and the other dragons. Jones decides he must go to Lanmad and ask for the help of Mrs Griffiths.