Doc and Sprocket are suspicious of some unfamiliar strangers going over to the Captain's Inn while Ms. Ardath is on vacation. They decide to investigate and leave to go check on the place.
It's morning in Fraggle Rock, and Mokey is already awake, the rest of the Fraggles still asleep. Red wakes up and checks on something in a handkerchief. She screams loudly, waking the entire Rock. Mokey, alarmed, asks what's wrong and Red exclaims that she's been robbed: somebody stole her radish bars. She almost immediately starts accusing others of stealing them, starting with Mokey's plant, Lanford. Red vows to question the whole Rock until she finds the culprit.
Red begins her interrogations. When she comes across Boober and Wembley, she finds them talking about soap bars, a new invention of Boober's involving a bar of soap that, when rubbed on dry laundry, leaves no mark, but when soaked in water, makes a distinct mark appear, thus allowing Boober to never mix up the others' laundry again. Red dismisses them, believing them innocent.
Mokey finds Red sitting alone in a cavern. Red has had no luck in finding out who stole her radish bars treats. They sing a song about the yumminess of radish bars and sweets in general. After the song, Mokey surprises Red with a couple of radish bars. Red suspiciuosly asks where Mokey got them, to which Mokey replies that the sweets were under her bed, she forgot she had them. Mokey seems convinced that there was no actual theft involved, but Red is adamant. Red comes up with a plan to catch the thief: use Mokey's radish bars as bait.
Doc and Sprocket are still spying on the Captian's Inn, Sprocket using binoculars to keep an eye on the strangers that have gone over there while Doc calls the police. While Doc is on the phone, Sprocket suddenly barks and takes off across the street to the Inn after the strangers. Doc calls after him, warning him to come back.
Red has made a very bizarre trap. It resembles a chandelier made from some type of wierd netting and other small, various objects. She has set other smaller nets around the room as well. Mokey more or less accuses Red of being obsessed with finding the thief, but Red stands her ground. Red puts her plan into motion, and she and Mokey each lay down and go to sleep for a nap in their cave. During the nap, while Mokey, Lanford and Red are all asleep in their cave, the silhouette of a hand appears on the cave wall and snatches the radish bars. Later, when Red wakes up, she finds the bars gone and the trap hasn't worked. She is mad, and accidently springs the trap down on herself. While Mokey tries to help Red out of the wierd net, Red comes to the conclusion that the thief was possibly already in the room at the time when they went to sleep. Therefore, Red starts accusing Mokey, who tells her she didn't take them. When Red pushes the issue, Mokey's feelings get hurt and she storms out of the cave.
Red recruits Gobo for help in another plan of hers to catch the thief. She borrows a couple radish bars from Wembley's supply (without asking him) so she can use as bait again, and has Gobo hide inside a rock outside her and Mokey's room so he can find out who goes in and out while they sleep. While he hides, Gobo reads his latest postcard from Travelling Matt. In the postcard, Matt sees Silly Creatures looking at clocks, which he describes as "strange signposts" that tell people where to go. After the reading, Gobo pokes his head out of his hiding place to check the tunnel and is subsequently startled by Wembley's panicked screaming. Wembley is upset because somebody has stolen his radish bars. Gobo corrects him by saying Red borrowed them to catch her thief. After Wembley leaves, Red comes running back out of her room to ask Gobo if he saw anyone. He says no one had come in or out of her room the whole time he'd been hiding. Red is now fully convinced that Mokey is the culprit and says she's taking her before the Emminent and Venerable Council of Sages.
At the Council meeting, the Council members and all who have come to observe sing a song which ritualistically begins the meeting. After the song, Red presents her case to the Council, blatantly accusing Mokey for stealing her radish bars in front of everyone. But the Council members reject Red's case because she has no actual proof that Mokey is guilty, and they accuse Red of false accusations and dismiss the case.
Red devises another plan to catch the thief - whom she now is completely convinced is Mokey - by using Wembley as her next witness, as well as using 4 more of his radish bars and some of Boober's magic marking soap. Later, Mokey has hung a large blanket up on a rope in her and Red's room to divide them, Mokey unable to see Wembley hiding under a blanket and ducking beneath Red's hammock. Mokey is furious at Red's accusatory behavior toward her and refuses to take the dividing blanket down until Red apologizes. Red just blows this off and sets her plan into motion. She and Mokey each go to sleep, as well as Lanford and eventually Wembley, who later wakes up just in time to see someone taking the radish bars. He is shocked at whoever he is seeing taking them.
Back at the Emminent and Venerable Council of Sages, Red once more brings up her case against Mokey, despite Wembley's protests that Red back off. But Red, still determined to nail Mokey, states that before the last nap, she had smeared some of Boober's magic soap on the radish bars, therefore whoever's hand turns red when dunked in water is the thief. She starts with Mokey by grabbing Mokey's hand and forcing it into a bucket of water. As they take their hands out of the bucket, Mokey's hand is clean - but Red's is the one that turns red. Everyone is shocked, and Wembley finally gets to explain what happened. Via a flashback, Red is shown sleepwalking from her hammock and over to the radish bars, where she gobbles them up while still asleep. Wembley had woken up and seen this. After the flashback, Red declares how dumb she had been at treating Mokey this way, saying she never should've accused anybody without real proof, especially her best friend. She apologizes to Mokey and Mokey forgives her. The Council once more accuses Red of false accusations and once again dismisses the case. Everyone goes to lunch but Red, who is sick at the idea since she had just loaded up on a bunch of radish bars.
Doc is on the phone with a police official as Sprocket returns, chewing a piece of torn material. Sprocket overhears Doc saying to the policeman that one of the strangers at the Captain's Inn was Ms. Ardath's brother, and that he wants to find the dog that had attacked him and bit off a large chunk of material from his pants and press charges. Sprocket quickly hides the piece of material as Doc hangs up the phone. Doc questions Sprocket about the "vicious dog" that had attacked Ms. Ardath's brother, and Sprocket feigns innocence.