The brothers think the elderly boy is a bore; he isn't really interested in adventure and is afraid to let the land out of sight. In spite of him they find their island, and go exploring.
While he's making a map of Grasshopper Island, Smarty discovers The Big House. He walks in through the front door just as Cornelius returns. So the Island is inhabited after all.
Cornelius Button's sister is coming to visit the Island, so Lupus goes to clear up the cottage for her to stay in. There, the boys are astonished to discover her.
When Mouse is swept out to sea on an oil drum he has found on the beach, Cornelius Button rescues him. Lupus's secret is out; the boys are discovered. But instead of being angry, Cornelius Button is delighted.