Mildred, a lonely little old lady out and about one day, finds a stray and decides to take him home. The stray won't eat dog food or bones, he only like peanuts. So that's what she names him. He helps her around the house and is a great couchwarmer. When Mildred takes Peanut for a walk in the park, she notices that he is not like the other pets. He didn't act like the other dogs either. Maybe that's because he's an elephant!
One day a man from a circus shows up and exclaims that Mildred has found the circus' missing elephant. Mildred quickly goes back to being lonely even though she visits Peanut at the circus, it isn't the same.
Then one day she found another stray...