Derek, Chris, and Brian, three seven-year-old boys, befriend Derek's new neighbor, Mike, who is blind. Their special friend, Cubbie Blue, a three-inch-tall being with supernatural powers, and his minuscule dog, Dot, help the boys learn about Mike's limitations and needs. This important knowledge allows them to properly welcome Mike to the neighborhood. In turn, the boys help Cubbie escape from the evil soldiers trying to capture him, and he is saved by their bravery.