When Mary Jane turns off the radio to take a nap, the music notes run off to Noteville. Mary Jane and Sniffles follow, but Mary Jane is taken to court on charges she cut off the notes in a middle of a song.
Puzzled by the colored clouds over Blue Mountain, Mary Jane and Sniffles get Gertrude Goose to fly them there to see what's happening. There they are captured by mushroom people who grow diamonds on bushes. Their King Moola is sick of diamonds and wants gold. Remembering the story of the goose that laid the golden eggs, he demands that Gertrude lay some golden eggs for him.