- Corduroy, a teddy bear in green overalls, waits on a shelf in a crowded department store for somebody to purchase him.
- Unfortunately, nobody seems interested.
- At long last, a little girl sees Corduroy and says he's "the very bear [she's] always wanted."
- Unfortunately again, the little girl's mom doesn't want to spend any more money. The girl's mother also notes that Corduroy is missing a button on his overalls, and they leave Corduroy behind.
- Now determined to find his button, Corduroy climbs down off his shelf after the store closes.
- He accidentally steps onto an escalator, which he assumes is a mountain, and rides it up to the furniture section of the store. Corduroy checks out these new digs, believing he's in a palace.
- Mistaking the buttons on a display mattress for his own, he tries to pull one button off. He pulls a little too hard and flies off the bed, knocking over a lamp.
- The store's night watchman hears the commotion, finds Corduroy, and brings him back to the toy department.
- The following morning, the same little girl returns to the store and introduces herself to Corduroy as Lisa.
- Lisa purchases Corduroy with the money she saved in her piggy bank. The saleslady asks Lisa if she'd like a box for Corduroy, but Lisa declines, opting to carry her furry new friend home.
- Lisa runs up four flights of stairs to her family's apartment and brings him to her small-but-cozy room.
- Corduroy admires the setup of Lisa's room: It has a chair, a dresser, a bed, and—gasp!—a doll-sized bed for him.
- Lisa picks Corduroy up and sews a new button onto his overalls.
- Declaring their newfound friendship, Corduroy and Lisa embrace, and they all live happily ever after.