Daffy Duck is reading a scary comic book called "Hideous Tales" (issue #176). The story ends in a cliffhanger, and Daffy rifles his bookcase looking for the next issue ("It's a veritable collector's item!"). A Smogzilla clock falls, and beans Daffy, making him think he's the featured act in a nightclub. All the customers at the nightclub are classic movie monsters. Fortunately, there was a bottle of "Eau de Tormé" in Daffy's dressing room, which makes him sing like Mel Tormé. He sings "Monsters Lead Such Interesting Lives" to the room, and they love it. Then he goes around the room, greeting the patrons, but his good-natured ribbing of "Smogzilla" doesn't go over well with the giant lizard, who eats Daffy. Daffy wakes up, to find himself stuck in a wastebasket, along with the comic he was looking for (Hideous Tales issue #177), with "Smogzilla" on the cover. Daffy scoffs, and the Smogzilla on the cover comes to life, saying, "You were expecting maybe Calvin Coolidge?"
This cartoon was the opening sequence for 1988's Daffy Duck's Quackbusters, which was released a day after this short was released.
The instrumental of "Monsters Lead Such Interesting Lives" plays during the credits.
Alfred E. Neuman (of MAD magazine fame) appeared briefly in this short holding some drinks (when the Creature from the Black Lagoon is shown).
Some of the monsters featured include Dracula, Frankenstein's monster, Bride of Frankenstein, Invisible Man, Creature from the Black Lagoon, The Blob, Medusa, The Fly, The Wolfman, and of course Godzilla (called Smogzilla in the cartoon).
Because Mel Blanc was very sick for recording voices and couldn't scream, Daffy's screams when eaten by Smogzilla were recycled audio from Boobs in the Woods.