Bonkers finds some graffiti scribbled on the sidewalk outside the police station and has Lucky look at it too. Obviously is is something rather raunchy in toon language, because when Lucky says what the pictures are, Bonkers washes his mouth out with soup. Bonkers then proceeds to sand off the graffiti. They then see more on the station wall and Bonkers uses a jackhammer on that. Meanwhile, a rough looking toon pencil watches from a distance and is happy to see the reaction his "art" gets. Bonkers reports what is happening to Chief Kanifky and he tells them to make the case top priority, much to Lucky's dismay.
While on patrol, they receive a call of a graffiti in progress at Fall-Apart Rabbit's address and they go there and talk to Fall-Apart. They learn that the fiend is a toon pencil and the pencil hears them talking and draws himself into a crayon. They leave and are going to ask Marilyn's toon friend, a pencil named Scribble, about the other pencil. The bad pencil hears this and head over to Lucky's house as well.
the toon pencil arrives first and ties up Scribble and draws himself to look like him. Lucky and Bonkers come in and the fake Scribble tells them how to catch a toon pencil and gives them some ridiculous instructions but they follow it anyway. While they are doing what he says, they hear that the graffiti fiend is in town and up to no good and they leave to go and stop him. They find him in the street and he is still in his Scribble disguise and Bonkers can't believe it. They chase him through the city and just when they think they have him cornered, he draws a door and escapes into the toon world.
Lucky and Bonkers head back to Lucky's house and the fake Scribble sees them drive up and is planning something devious when Marilyn wakes up and asks him why he is still up. He says that he is going to bed and draws a door and goes into the toon world and Marilyn realizes that he's not Scribble and follows him to find out what he did with Scribble. Lucky and Bonkers come to Marilyn's room and see that she's missing and Bonkers calls on Toots to help find her. Since she is in the toon world, Toots keeps finding traces of her all over the house and Bonkers is using a mallet to bust the wall open in hopes of finding the portal to the toon world and winds up just putting a lot of holes in Lucky's house. Dyl asks Lucky where Marilyn is and what is going on and Lucky comes up with a cover story to sort of pacify her for the moment. Bonkers and Toots find Scribble stuffed away in a sock and Scribbles hears what has happened to Marilyn and he draws a door to the toon world and Lucky tries to go through and the hole is too small. Dyl comes in and discovers what is going on and is mad at Lucky and swings the mallet at him and busts a hole in the wall and finds the portal to the toon world. Lucky, Bonkers and Scribble enter it to find Marilyn.
Marilyn find the toon pencil and confronts him. He tries to scare her and she tells him that she is not scared of him and says that he can't scare her and make her yell for her dad, which she does. Lucky hears Marilyn and runs to the sound of her voice and doesn't pay attention to the toon sign that says no entry and he is grabbed by a toon tree. Bonkers rescues him from the tree and now he is caught. The tree makes Bonkers into a ball and they play baseball and knock Bonkers into the air and Lucky tries to catch him but runs out of street and Bonkers hits him and they fall into a trumpet. They have to go through a bunch of crazy toon things to try and find Marilyn. Meanwhile, Marilyn is able to talk some sense into the toon pencil and she winds up reforming the graffiti artist by telling him that he really could be a true artist. Lucky, Bonkers and Scribble finally catch up to the toon pencil and Marilyn and the toon pencil is crying. Marilyn says that he is now a reformed pencil and Lucky is happy to have found his daughter. they return to the real world (sort of by accident, thanks to Luck) and Chief Kanifky thanks Lucky on doing such a good job reforming the pencil. Dyl and Marilyn have hired the pencil to do work in the house to help him get started in an honest career and Lucky groans.