Donald Duck has converted his backyard into a miniature landscape to go along with his model train. In the process of making sure everything is to the proper scale of his train, he comes across a large tree, that he decides to take out. As he's transporting it, Chip and Dale see their tree (aka their home) being taken away on a flatbed car of Donald's train. After interfering with Donald, he chases them into a miniature suburban neighborhood.
Donald soon becomes captivated that they are to the proper scale of the house they have run to, and plays along delivering the two chipmunks some miniature milk bottles for a small supper they are preparing. However, Donald soon decides to play a prank on them, making it appear to snow, and then seem to be very hot outside.
Having had enough of 'playing house,' the chipmunks hijack Donald's train. As they go around the track, their tree flies off, and the train barrels on through the bottom, creating a hole for the train to go through. As Donald regains control of his train, the chipmunks mention that their tree could be considered a 'giant redwood' tree. Donald happily obliges, and allows the tree and the chipmunks to remain on his property.