Harold finds a stray kitten and keeps it as his own after Arnold gets it from a garbage can. He names the kitten Cupcake since the kitten looks like one. Arnold's flyers bring the real owner back to find her lost kitten, but Harold won't give the kitten up. When Harold refuses to give Cupcake back to his rightful owner, the police come.
In the end, Arnold goes through a window to talk to Harold into letting the cat go and Harold plays with Cupcake at Mrs. Ryle's house; making the group of kids he taunted rethink Harold as a bully.
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