- "You were right! I saw your chicken AND a duck!"
"You're both mad!"
- ―Edward and Gordon
Giant Animals, later renamed James and the Giant Animals, is a magazine story.
As James passes Dingley Hall, his driver draws his attention to a "giant chicken" in the grounds of the country house. James decides he must tell the other engines, despite his driver telling him not to worry about it. At the station, James warns the other engines about the "giant chicken". Both Thomas and Edward think James is seeing things.
Later, as Edward passes Dingley Hall, he sees the chicken too. Edward is not worried; it will take more than a "giant chicken" to worry a sensible engine like him. Then, to Edward's amazement, he spots a green duck in the same field. He realises that James had been telling the truth. That evening in the shed, Edward admits that James had been right, but Gordon merely thinks that his two friends have gone mad.
The next day, James and Edward both have boiler ache so Gordon has to do their jobs. Gordon is not amused and vows to give any giant animals a loud "peep". As Gordon passes Dingley Hall and sees the giant chicken, duck and a rabbit as well, he loses his "peep". Then, the gardener explains that the animals are not real, he has just been cutting the bushes into interesting shapes. Then, Gordon has an idea and asks the gardener to make an elephant-shaped bush so that he can send Thomas there to be shocked, too.
- This story's second title is possibly a reference to Roald Dahl's children's novel James and the Giant Peach.