Jeremy, Bellamy and Ted, three pirates brave and bold, set out to find treasure with the help of a very annoying parrot. They make their way deep underground, into the dark and the damp. The parrot, away from the sky and the sun and unable to fly, trails behind; repeatedly calling out 'where's the gold?' When they come to something scary in the tunnel, and not knowing what it is, they huddle together in fear. When the parrot, in the confusion, bites Ted on the bottom, the three pirates are convinced there is a monster after them and flee back the way they came; not stopping until they are back safe in their boat and out at sea.
The story is enlivened by two die-cut holes in the pages of the book that lead the reader through the page and into the tunnel, then, at the end, out of the tunnel into the sunshine.