In a curiously unselfish moment, Fitzhugh creates a distraction to let Valerie escape a giant, and gets captured himself. The giant, Deenar, is a wax sculptor and diamond cutter, who wants to make statues of Fitzhugh and sell them. Deenar is also the silent, wimpy partner of Jolo, a wax museum owner and thief.
Jolo browbeats Deenar and forces him to cut a stolen diamond up into multiple pieces to sell without it being identified. Steve and Dan contact Deenar, and offer to find the diamond (hidden in Jolo's wax museum) while Deenar distracts Jolo, in return for Fitzhugh's freedom. Deenar agrees, so Mark and Valerie look for the diamond while Steve and Dan try to free Fitzhugh. He's been imprisoned in a jar of wax or clay or something, and Deenar has tied his dog up nearby as a guard. While they overcome these obstacles, Mark and Valerie are unable to find the diamond, even hidden within the statues.
Fitzhugh is eventually rescued and the five get back together at the wax museum where they find the diamond in a walking monk statue. Fitzhugh tries to grab it and the group is spotted. Steve threatens to throw the diamond out a window (?!?), which distracts the giants long enough for a policeman summoned by Betty arrives and arrests them all while Earthlings escape.