Pelle has a lamb whose coat grows longer and longer, while Pelle's suit grows shorter! Pelle shears his lamb but he doesn't know what to do next. Pelle offers to do chores and run errands for his family and neighbors in exchange for their help to card, spin, dye, and weave the wool. When the fleece has finally been made a fine blue cloth, Pelle asks one last favor—for the tailor to make it into a smart new suit.