The people of the village need to earn a little dough to fix the church roof, and decide to cut down a few trees for that purpose. But then they realize they can cut down ALL the trees, and everyone can be rich! (Yeah, it's that level of thought and complexity that drive this plot - don't overthink it.)
The various animals of the forest try to prevent the humans from carrying out their task, by causing various levels of mischief (that elevate throughout the show), with a magical (but mostly useless) elf as their helper. The simple message in the end is, humans and nature should live in harmony, and animals need a place to live, too.
Simply drawn, simply animated - as are most children's stories like this.
