At a county fair, Farmer Hoggett participates in a contest, correctly guessing the weight of an orphaned piglet named Babe. He takes the piglet home as his prize and situates him in the barn with Fly and Rex, two Border Collies, and their litter of puppies. Fly, a sheep herding dog, acts as a mother to Babe. The pig also befriends a duck named Ferdinand, who makes himself useful to the farm by crowing like a rooster. Fearing that he will be eaten if Hoggett relies on an alarm clock, Ferdinand convinces Babe to help him break into the house and steal the clock. They complete their mission; however, as they are chased out by Duchess the house cat, they leave a mess in their wake. Rex admonishes Babe for associating with Ferdinand and for infiltrating the house. Later, after Rex and Fly’s puppies are sold off, the Hoggetts prepare for a Christmas dinner with relatives. Hoggett and his wife, Esme, consider serving Babe for dinner. Hoggett suspects Babe might win a prize at the next county fair, so a duck is chosen, instead. Hoping to make himself useful on the farm, Babe shows an unexpected proficiency for herding sheep. Rex does not approve and attacks Fly, whom he deems responsible for the pig’s proclivity. When Hoggett steps in to break up the fight, Rex bites the farmer’s hand. Hoggett retaliates by sedating Rex and chaining him up. While Fly recuperates from her injuries, Babe takes over sheep herding duties. One morning, he saves the sheep from a trio of vicious dogs. Maa, an older ewe who has been a friend to Babe, is fatally wounded. Hoggett mistakenly suspects Babe of killing her. Fly investigates the incident, and the sheep inform her what happened. She distracts Hoggett long enough for the farmer to discover that a group of feral dogs have been attacking sheep at nearby farms. Hoggett realizes that Babe had acted heroically, and rewards him by entering him into a sheep herding competition. The night before the event, Duchess the cat bitterly informs him that pigs are raised to be eaten. Frightened for his life, Babe flees the farm. Fly organizes a rescue mission. Rex finds Babe in a cemetery, and alerts Hoggett, who brings the pig home and tries to cheer him up. Babe warms to him once again, and soon, the two attend the sheep herding competition. When it is his turn to perform, Babe is unable to corral the sheep. Rex, who suffered a similar failure years before, runs back to the farm to get advice from Hoggett’s sheep. In exchange for better treatment from Rex, they inform him of a secret chant, known only to their species. Rex rushes back to the competition and teaches Babe the chant. The sheep submit completely upon hearing it, and Babe wins. Hoggett responds in his usual subdued manner, saying, “That’ll do, Pig. That’ll do.”