Pink Panther tries to save the tree where he resides from Big Nose, who's in charge of building a highway. His efforts to cut it down are repeatedly thwarted until a last try seems successful, until the tree drops down on the new highway. But Pinky, Big Nose, and a beaver come to a compromise as they get termites to dig a tunnel at the bottom of the tree where Big Nose can work as a toll booth clerk to earn money for his successful highway.