Lotta Legs is still in love with Luke, who does not seem to have the same feelings. A gypsy appears in Daisy Town, selling a mysterious 'love potion', that makes the one that drinks it fall in love with the first person he sets sight on. That's just what Lotta needs! But everything goes wrong: Joe Dalton falls in love with the gypsy, Jack falls in love with Lotta and Averill falls for Jolly Jumper, the horse! After the love potion wears off, Luke confesses his love to Lotta while she is fast asleep...