Sailing in the Sky is about a journey of four children in a small ship that sails up a river of moonbeams into the night sky where they meet the man in the moon.

Time seems to slow down for them, and they meet time itself who appears to them as a young child. Time explains that it is only a brief mistake on his part that allowed them to sail into the sky.

One of the children then fills his fishing nets with jewels and soon the night is over and the ship comes back down and they arrive at home. After the adventure is over they wonder if it was a dream or if it was all real?