A hungry monster, a disgusting sandwich, and a strict teacher all contribute to the misery of little Billy. Through cunning, luck, and a little toe jam, Billy finds a solution to his terrible problems. A monster who is looking for a midnight snack wakes up a boy named Billy. Afraid of being eaten by the monster, Billy offers to make a toe jam sandwich. Thrilled with the resulting sandwich, the monster announces he will return the following night. But the next day at school, a very tired Billy gets into trouble with his teacher, Miss Dinklewart. There is another midnight encounter with the monster and an equally unpleasant time with his teacher the following day. Billy is at his wits end but manages to come up with a solution that takes care of all his problems.