Swampy and his granddaughter trial Oddball on the island, but time isn't on their side.
If the penguin colony gets to fewer than 10 penguins it loses its protected status, and will make way for a whale-watching business the council is keen to put in place.
It doesn't get cuter than a dog and penguins bonding together, and the scenery is also a winner, with sweeping vistas of Western Australia's stunning coastline.
Less impressive are the scenes set on the island, which have obviously been shot in a studio.
Director Stuart McDonald comes from a television background and takes an upbeat approach to his feature film directorial debut.
Rather than the usual Aussie deadpan humour he's opted for a exaggerated slapstick approach, which makes the cast look like they're overacting or trying too hard, but which will likely appeal to younger audiences.
Not everyone is afflicted; playing the town's mayor, Deborah Mailman does a much subtler job while remaining a touch eccentric, and Offspring's Richard Davies makes the humour work nicely for his goofy character.
It may not quite capture the fairy tale magic, but this is a cool little story with its heart in the right place.
Just remember, it's best seen through the eyes of younger kids.
Cast: Shane Jacobson, Sarah Snook
Director: Stuart McDonald
Running Time: 95 mins
Rating: G
Verdict: Fun, old school family entertainment.