There's a Pet Show on Sesame Street, and everybody proudly shows off their pets. Oscar the Grouch is disappointed that all the entrants are cute, and wishes there were better pets like spiders or jellyfish. Unbeknownst to Oscar, Slimey the Worm enters the competition, and wows the judge by making the letters U, C, and O, and dancing the "worm-trot". He wins first prize, and Oscar is appalled that other people think his pet is sweet and friendly.
Cartoon: What if a dog looked like a bird?
Cartoon: A woman explains the letter H and its use in "horseshoe", when a horse comes to reclaim his shoe and starts tickling the woman. (First: Episode 0020)