From an old San Francisco house, the BROOKS FAMILY struggles to make ends meet. Times are tough for MICHAEL BROOKS (Dean Cain), his wife AMELIA (Kirstin Eggers), and their children-- eleven year-old ERIC (Leo Howard) and his six year-old sister LANEY (Alyssa Shafer).  Laney's best friend is the family dog AUSSIE, a stray that Michael brought home from a trip to Australia. Laney and Aussie have a unique bond of friendship. They do absolutely everything together...that is, until the day Michael brings home a very special gift for his daughter.

Michael makes a trip to his childhood neighborhood, Chinatown, where he runs into an old friend... a mysterious, wise woman named MEI MEI (Emily Kuroda). When Michael describes his daughter to Mei Mei, the elderly shopkeeper recommends a very special TEDDY BEAR as the perfect gift. But this is no ordinary toy. When it connects with the true love of a child, the bear glows and communicates with its owner. Laney immediately connects with the bear, sensing that it is more than just a stuffed animal. She names him TED.

From the moment he arrives, Laney and Ted are inseparable. Aussie becomes jealous and purposely “loses” Ted.  When he sees how sad his master is, Aussie’s guilty conscience pushes him to make amends.  The dog embarks on a perilous journey to rescue the teddy bear. 

United in their love for Laney, Aussie and Ted must find their way back home—a daunting task, since the Brooks family has been forced to move far from town to the farm of AUNT ZELDA (Beverly D’Angelo).  Ted helps Aussie learn that nothing is impossible, as long as you believe in yourself.  On their journey, the two become a team of unlikely heroes. AUSSIE AND TED is a funny, heartfelt story about the true meaning of friendship.