Esmeralda arrives at the Stephens' home and mistakenly lands in the bedroom. She proceeds to get very upset over the fact that all her spells go wrong and decides she is a failure as a witch. To make matters worse Samantha has asked Aunt Hagatha to baby-sit that evening and not Esmeralda. In the midst of the scene, Larry Tate arrives. He announces that the client, Mr. Norton, and his wife cannot find a baby sitter for their son and won't be able to join them for dinner. Larry, seeing a chance for his contract to be signed at dinner, loses no time arranging for Esmeralda to baby-sit for the Nortons.

There ensues an evening of botched up magic courtesy of Esmeralda much to Ralph Norton's pleasure. The next day, however, Ralph comes home from school with a black eye due to his unbelievable tales of the night before. Enter the over-protective mother! The result is that Larry Tate's business prospects with Mr. Norton disappear and quite without the use of magic. Samantha arranges a party complete with a magic show by Esmeralda. The Norton's are all invited and when the grown-ups view Esmeralda's unique form of wizardry they understand how Ralph might have believed Esmeralda was a witch. Everyone winds up friends again and Larry Tate regains his client.