Gulliver washes ashore on Lilliput and attempts to prevent war between that tiny kingdom and its equally-miniscule rival, Blefiscu, as well as smooth the way for the romance between the Princess and Prince of the opposing lands. In this he is alternately aided and hampered by the Lilliputian town crier and general fussbudget, Gabby. A life-threatening situation develops when the bumbling trio of Blefiscu spies, Sneak, Snoop, and Snitch, manage to steal Gulliver's pistol.

Gulliver begins a voyage by boat, but in the middle of the trip is caught in a storm and the ship sinks. Gulliver comes then to Lilliput, an island inhabited by tiny people. It will have many adventures, helping to establish peace with the neighboring country.

The story, a Communist re-telling of Gulliver's Travels, is about a young boy who dreams of himself as a version of Gulliver who has landed in Lilliput suffering under capitalist inequality and exploitation.