It's Mr. Percival's birthday and Thomas and the narrow gauge engines are delivering special presents for the party. Sir Handel is going to tell a Man in the Hills story because they are Mr. Percival's favorites. Thomas decides to go in search of the Man in the Hills for Mr. Percival but instead disrupts the preparations of the party. Thomas is determined to put everything right and races off to pick up the birthday cake. On his way back he takes a short cut and sees a carving in the side of a hill in the shape of a man: The Man in the Hills! Thomas arranges for the party to take place in front of the Man in the Hills and sets a perfect scene for Sir Handel's story, making Mr. Percival very happy on his birthday.