On the arrival of the second litter, Norb and Dag are turned out of their parents dam. They struggle through several attempts at "alternative housing" before establishing a dam of their own. Norb and Dag's novel idea to stay awake all night quickly slides into chronic sleep deprivation.

Counting on the natural beaver reflex to dam running water, the government air-drops Norb and Dag into a flood zone.  What the government hadn't calculated was that the boys' constant squabbling would create a log jam of its own. Norb starts a "forest fad" when his teeth grow super long after he forgets an important beaver rule: chewing.

When Norb gets a train set for Arbor Day and Dag only gets an air freshener, Dag's jealousy gets the better of him. The hometown football team, naturally named The Beavers, are being crushed by the visiting team.

Dag and Norb resist their natural urge to hibernate and "Go-Go South" for the winter. When the Forest Ranger quits, Dag gets himself elected and it's not long before the power goes to his head.

Norb secretly props up Dag's secret super hero identity until he gets in a tight jam and then it's "Muscular Beavers to the Rescue!" The beavers confront the terror of the unknown when Dag believes he barely escaped an underwater encounter with the legendary "Old Gramps", a muskellunge so huge he can supposedly swallow a Swede.

Feeling his natural beaver defenses are weak, Dag relentlessly attempts to learn new methods of self defense. A cricket drives the beavers up the wall and almost out of the dam with its continuous chirping as they struggle to locate the bothersome pest.