Mike "Mikey" Bailey is a rambunctious 10-year-old living in Hudson Harbour, New Jersey. His notable family members include his grandfather Frank, a Illusionist; mother Jackie; and older brother Steve who is a loner and wishes to join a local street gang. Mike encounters a stray dog who he names Mutt, who leads him to a spot where he seemingly witnesses a rainbow actually land. He tells his friends Pete and Tessy of his encounter and takes them to the landing site, but they do not believe his claims. At the site they find a triangular crater, Tessy taking a soil sample and testing it, the soil illuminating in colour and vanishing in her hand. Mike, Pete and Tessy prepare a scientific project to track down the next rainbow and examine it.