The story begins with a profound realization of mortality. A sheep, being fed in a pen, is informed by his master that he is being fattened for the market, where he will be "killed and eaten." Instead of accepting this fate, the sheep decides, "I think I shall have something to say about that." This act of defiance serves as the catalyst for the entire narrative. The sheep escapes and embarks on a journey to recruit other animals—a pig, a goose, and a rooster—who are all unknowingly being prepared to become "roast pig," "roast goose," or killed by a "sharp axe." By revealing the grim truth of their situation, the sheep encourages his peers to reclaim their agency and leave their pens behind.
Once the group is assembled, they venture into the forest to "build a house and live together." This phase of the story emphasizes the value of cooperation and individual contribution. The sheep and the pig, described as "strong," take on the heavy construction duties, putting "logs together" and crafting a roof. The goose demonstrates practical utility by using mud to fill the "cracks between the boards," ensuring the home is protected from "the snow, the sleet, and the rain." The rooster provides structure to their daily life, promising to "wake you early in the morning." Through these combined efforts, they successfully transition from vulnerable livestock to self-sufficient inhabitants of their own sanctuary.
The peace of their new life is threatened by "two bad wolves" living nearby. Driven by hunger, one wolf attempts to invade their home, assuming they will be easy prey. However, the animals are prepared. They employ a coordinated defense: the sheep "bumped him with his horns," the pig "bit the wolf's toes with his sharp teeth," and the goose "snapped at his heels." Meanwhile, the rooster flies to the "top of the chimney" to create a cacophony of sound. This multi-faceted assault turns the tables on the intruder.
Perhaps the most compelling aspect of the story is the psychological victory achieved by the animals. When the injured wolf returns to his companion, his trauma causes him to perceive his victims as terrifying supernatural entities. He describes the sheep as a "great giant," the pig as a "big troll," the goose as a "terrible beast," and the rooster as a "bad old witch." By exaggerating their threats, the wolf inadvertently ensures his own safety by swearing off the house entirely. The wolf warns his peer, "I certainly won't go there again," effectively securing the animals' safety through fear.
The narrative concludes with the animals enjoying their hard-earned freedom. No longer subject to the master’s timeline or the threat of the butcher’s knife, they revel in their autonomy. The pig’s final sentiment, "Now we can eat all we want and get as fat as we please," signifies the ultimate triumph of the group. They are no longer defined by their utility to humans, but by the life they have built for themselves, living "very happy together in the little home they had built."