A little girl gives a Christmas party for her friends, and among the many gifts she receives is a bright red cape. The cape delights her so much that she adopts the name of Little Red Riding Hood. After the party, she and her friend, who is spending the night, scramble into bed, where they encounter the "dream angel" sitting on the hook of the moon. Red Riding Hood dreams that she is riding a trained pony at the circus and then, that she has become the Little Red Riding Hood of the folk tale. As in the story, she visits her grandmother with a basket of presents, but when she meets the evil wolf who plans to eat her, she awakens to seek the protection of her mother's arms.