Charlie is an old horse who has worked on a farm all his life. Now he spends his days in the shade of a cedar tree reminiscing of the bygones and particularly his old friends who are no longer there.
Sometimes he looks at the sky and wonders if they are up there. "Yes," he thinks. "The sky is a good place to be."
One sunny day Charlie is dozing off when he is disturbed by a young rabbit who calls himself Blue on account of the colour of his eyes. Blue is very curious about Charlie but the old horse doesn't wish for any company and tells him to go away.
While playing nearby Blue is not aware of a hawk circling above and when it swoops down Charlie, old as he is, rushes to shield the young rabbit who doesn't even realise the danger.
Finally Blue goes home but only to return the next day. Charlie is slightly annoyed. He tries to explain to the young rabbit as gently as possible that their friendship is not worthwhile because he is too old and he is not going to be there for long.
"Where will you go?" asks Blue innocently.
"In the sky," replies Charlie. "It's a good place to be."
"It's beautiful," agrees Blue.
Blue is so persistent and likeable and above all so funny that eventually the old horse succumbs to the young rabbit's antics and a bond forms between the two unlikely characters.
The time that they have together is short but they make the most of it. They roam the countryside and Charlie points out to his young friend its beauties and dangers.
Then the seasons change and the time for Charlie to go to the sky arrives.
"I'll always be there," Charlie tells Blue. "You watch out for me!"
"I will," smiles Blue....
... And he's true to his promise.