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It is opening night at the House of Mouse, a new night club co-owned by Mickey and Donald, where the former is the host of the entertainment and the latter greets the guests as they arrive. Donald expresses envy about not being the host of the club and vents about it to Daisy, who tells him he'll surely get a chance to be the host someday. Just then, Pete barges in and orders the crew to leave, saying he has just bought the building and is now shutting the place down. However, Mickey finds a clause in the contract that says Pete cannot shut the club down as long as they have a show going on. Pete storms out, saying he'll make sure the show doesn't go on.
The first two cartoons of the day are shown, but when the next cartoon does not come up, Mickey and Minnie go up to Horace's booth to investigate and find him tied up, saying that someone has stolen their cartoons. Mickey figures that Pete is the culprit, but the fat cat denies his guilt, despite the obvious clues pointing to him. Mickey, Minnie, and Goofy leave to go film a new cartoon, leaving Donald in charge of the club till they get back. Donald naturally takes advantage of this and reshapes the club in his image, changing its name to the House of Duck. However, he soon has trouble keeping things running smoothly when he has to bring the guests their food, and when the guests grow restless for Mickey to come back, his attempts at imitating Mickey's roles from Steamboat Willie and Fantasia end up making them leave.
Just when Pete is about to make Donald hand over the keys, Mickey, Minnie, and Goofy return with the cartoon they just filmed, and upon seeing that Mickey's back, the guests return as well. Mickey runs the new cartoon, but after it's finished, Pete then points out that with only that one cartoon, the guests will eventually get bored and stop coming. However, in doing so, the missing cartoon reels he stole earlier fall out of his suit. One comedic chase later, Tantor grabs Pete and throws him out onto the street.
- The animation of Jafar arriving at the club in the Cave of Wonders and giving Max the Golden Scarab Beetle was recycled into Mickey's House of Villains.
- Jafar hypnotizing Daisy into letting him into the club despite his lack of a reservation is a nod to a similar scene in Star Wars: A New Hope.
- This is notably the only episode of House of Mouse where characters created for another Disney television cartoon (Pepper Ann) make an appearance, in which Pepper Ann and her mother encounter Pete.
- As of 2016, this is the only full episode of House of Mouse to have been released on any home video format; it was included as a bonus feature on the Mickey's Magical Christmas: Snowed in at the House of Mouse DVD, cropped down to 4:3 (full screen) format.