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Courage the Cowardly Dog follows Courage, an easily frightened, pink beagle dog. He was abandoned as a puppy after his parents were forcibly sent into outer space. He lives in a farmhouse near the fictional town of Nowhere, Kansas with Muriel Bagge, a sweet-natured Scottish woman, and her husband Eustace, a grouchy, selfish, greedy farmer who constantly harasses Courage. Courage was found in an alleyway by Muriel, who took him up as her own.
Courage, Muriel and Eustace frequently run into monsters, aliens, demons, mad scientists, zombies and other supernatural perils from myths and legends that Courage must fend off to save his owners, unbeknownst to them. Although most of the creatures that the three face are frightening or disturbing, some turn out to be sweet and simply in distress. The plot generally uses horror conventions, common to horror films. Ironically, given his name, Courage is a genuine coward, but still goes to great lengths to protect his owners.
Although episodic in nature, there are a handful of recurring characters in the show's cast, including Courage's sarcastic, sentient computer, the family physician Dr. Vindaloo, the Gypsy fortune-telling chihuahua Shirley the Medium, Eustace's mother "Ma", and recurring villains such as Katz and Le Quack.