Continuing the theme of recounting earlier events, Gildersleeve remembers last year's 4th of July picnic. At the breakfast table, Marjorie helps Birdie get things ready. In his white summer suit, Gildy looks, and feels like the Good Humor man. With a little help from Leroy and Marjorie, he puts the flag on display. Suddenly, he's stuck, and needs Leila Ransom to rescue him. In the end, seeing the flag on display is worth the effort.
Enjoying the swing, and a cigar, Gildy has his idyllic holiday interrupted when Craig Bullard pulls a tiny canon around. He won't actually shoot Gildersleeve, will he? Leroy's helpful tips end up with Craig crying over who gets to pretend to be which general. One high point is when Floyd pulls up with a horse drawn hay wagon, all set to go for a hayride. Joining the Jolly Boys, the gang sing as they ride off to pick up their girls.
Gildy is impressed with Leila's playsuit, but the Jolly Boys argue over who has thee better barbecue recipe. To get a good fire going, Gildy hunts down Leroy to gather firewood, but the boy isn't thrilled to leave his swimming hole. The Jolly Boys decide to hit the refreshing water as well, all edxcept for Peavey.
All the friends spend time swimming and diving into the water. Standing on their heads, and swimming underwater. By now, even Peavy is enjoying a swim. The water babies take time to eat, then enjoy the clear night sky. Soft music, getting cozy, and singing In the Good Old Summertime.