The story is about Mr. Mixie Dough, who "lives away up in the sky in a place called "Behind-The-Clouds-Town". But unhappiness creeps over the town because the King Misty "cannot get a Happiness cake for his little boy's birthday." Mr. Mixie Dough, along with all of the other bakers, compete in making a "Happiness birthday cake" for the King's son's birthday.
The tale centers on Mr. Mixie Dough, who dwells in a realm above the clouds known as 'Behind-The-Clouds-Town'. Nevertheless, discontent spreads throughout the town as King Misty is unable to acquire a Happiness birthday cake for his infant son's birthday festivities. Mr. Mixie Dough, along with other bakers, engage in a competition to create a "Happiness birthday cake" for the King's son.