Sylvester the Gnome needs a new home; Peter helps him to settle in the elevator, as gnomes live in mechanisms. As the neighbors show bad behavior, Sylvester keeps shutting down the elevator. Later, when a whole stream of gnomes come in need of home too, Peter helps them settle around the city. Soon, chaos breaks out, all equipment failing. Peter and Wolf decide it is time for the gnomes to look for a new home again…