Oliver makes his escape from the workhouse and his newfound Dodger leads him to the hideout of his fellowship. To ensure his stay, Oliver has to pass three tests, whilst avoiding Mr. Bumble and his two goons.

Oliver, Dodger and Charlie venture get an alligator from the sewers, hoping to start up a show, but Bill Sykes takes charge for the show. For that Dodger sets the alligator on Bill, then sets it free.