A piglet called Babe is forced to prove himself useful after a farmer wins him at a county fair contest. A sheepdog on the farm takes Babe under her wing and teaches him how to herd sheep, much to the resentment of her husband Rex who opposes Babe's newfound calling.
After winning the sheepherding contest, Babe returns to Farmer Hoggett's farm. But when Hoggett gets injured, Babe and Mrs Hoggett head to the big city to raise money and save the farm.