The near-sighted Mr. Magoo (voice of Jim Backus) decides it is time for him to renew his drivers' license. Trust to form, he heads for the motor vehicle bureau but winds up at a maternity hospital.

There is a sculpture contest with large prize money for the winner, and Mr. Magoo decides to become a sculptor and do some sculpturing. He borrows a friend's studio and goes to work on his creation. When a police-pursued jewel thief enter the studio, he convinces the near-sighted Magoo that he is a beautiful model, and Magoo, happy to have a beautiful woman as his model, sculpts away. The police finally arrive, and Magoo gets a reward for the thief's capture, and his sculpture wins the first-place prize money in the sculpture contest.

Mr. Magoo decides to sell his old house and plans to make an additional profit by selling off his furnishing as antiques. But, the near-sighted Mr. McGoo can think better than he can see, so he inflates the value to the tax-collector and lowers it to the antique dealer.