The president of QTTV is thrown out the window since the shows under his reign got nothing but bad ratings. So the executives decide that it is time to find a new president who understands entertainment. That's when they turn to Bugs Bunny. The network calls Bugs Bunny and asks him to be the new president. They also ask him how he came to be and that's when the special shows scenes from What's Up Doc?. Eventually, Bugs accepts the job.

If Bugs Bunny were to direct his signature inquiry--"What's up, doc?"--toward the modern-day Warner Bros. creative team, he wouldn't be far off. For 1001 Rabbit Tales, they've doctored up a batch of classic cartoons featuring the carrot muncher and his bumbling comrades and bundled them, near seamlessly, into a feature-length film. Here's the premise: Bugs and Daffy, both book salesmen, are competing to sell the most copies of a kids' book. Instead of burrowing a beeline to his sales territory (he should have made a left at Albuquerque), Bugs ends up in the castle of Yosemite Sam, here a harem-leading honcho. Sam's pain-in-the-spurs son, Prince Abalaba, needs somebody to read him stories; Bugs, who'd sooner take the job than suffer the alternative, that involving being boiled in oil, signs on.

Daffy Duck and Speedy Gonzales find a treasure map that leads them to a wishing well, which for a penny will grant any wish (through old cartoon footage). Daffy sets up a resort around the well and various Looney Tunes characters have their dreams come true. Meanwhile, Yosemite Sam and the Tasmanian Devil hunt for the varmints who stole their treasure map!