The near-sighted Mr. Magoo returns from a trip and mistakes a ramshackle shack, near his home, for his palatial home. There, he finds evidence of all manner of crimes, ranging from murder down to counterfeiting, and jumps to the conclusion that his nephew Waldo is responsible. He gets Waldo and runs away seeking a hideout until he can straighten things out. Following Magoo's fugitive-directions, they wind up in the city jail.