At the Old House - and all over the neighborhood - people's hats, gloves and scarves are missing. Madeline and Pepito work with Detective Moreau to find the perpetrators, then finally discover that the "thieves" are some altruistic magpies who are distributing the warm clothes to the homeless in the park.

The Old House, sorely in need of repair, is condemned and the girls are forced to move to a small apartment where their snooty neighbors hate kids and dogs. But just before the wrecking ball destroys their beloved abode, Madeline enlists the aid of the ladies of the Historical Society, who help get the Old House renovated to perfection.

Madeline's country cousin Andre comes to town. Everyone thinks he's nothing more than a bumpkin with phenomenal gardening skills until, with Madeline's encouragement, he saves the day at the big soccer match.

When Madeline and the girls visit a toy factory, Madeline is accidentally boxed as a "doll" and sold to a handicapped girl. The ailing child considers Madeline her only friend and is devastated when Madeline reveals her true identity and has to go home. But things turn around the next day when the little girl discovers she now has twelve real live friends.