Mitzi wants her friend Josie to have the best birthday ever. The trouble is, Mitzi can't decide what to get her for a present - so she enlists the help of the Koala Brothers. Frank and Buster discover that while Josie already has a boomerang, and spinning hoops make her dizzy, she doesn't have a kite - so they head back to the Homestead to tell Mitzi.
Mitzi is delighted and decides to make one and give it to Josie at a special surprise birthday party down at the waterhole. But on the way, she trips and breaks the kite. When she arrives at the waterhole, she is very upset about the broken present.
Josie tells Mitzi that while presents are nice, it's friends who really matter, and they all enjoy a happy birthday party together.