Wilbur Post and his wife, Carol, move into their first house. They find the previous tenant's horse abandoned in the backyard barn. Carol insists on selling the animal, but Wilbur wants to keep it. To his surprise, the horse agrees with him.
Ed feels neglected on his birthday because Wilbur is leaving him at a stable, while he goes on a 3-day fishing trip to Mexico. Ed decides to run away and join Kiddy Park, where he gives rides to children.
Mister Ed's mother is being used as a plow horse, so he begs Wilbur to buy her at auction. Carol is dead set against taking in another horse, and Roger is dead set against Kay spending any of his money at the auction.
Carol has sprained her wrist, so Wilbur hires Velma, a fantastic cook. She even serves carrot pizzas to Ed. When Velma announces that she's leaving to find a boyfriend, Ed calls her on the phone and pretends to be a local secret admirer.