Mickey Mouse, Donald Duck, and Goofy are the owners of a small tavern in a New England village called Fish Haven.
On a stormy night, they are visited by a parrot with a peg leg named Yellow Beak.
He is hiding from Black Pete because Yellow Beak has the treasure map of the pirate Henry Morgan.
Pete overhears all of this discussion and disguises himself as an old woman, who persuades the treasure hunters to lease his ship, the Sea Skunk.
The ghost of Captain Morgan can't tell the trio directly where the treasure is hidden because "Dead men tell no tales".
Their gloom is lifted when Donald bursts in with a newspaper and the headline that Pete has been arrested for passing counterfeit treasure.