All-alone is very unhappy. He would rather a cottage than a tree. Goblin Good-fellow offers to build him a house among the bluebells. When he has a house, he is lonely and seeks companionship with the rabbit and the frog, who explain that his house is not the kind of place they need to live. Finally, All-alone discovers that the little grey mouse has been living in his cottage since it was built, eating the crumbs from his cake. The elf was, however, always called All-alone because noone else knew that the mouse lived with him.