Red and Mokey search for a new cave to share, and they find a previously unknown cave that looks out right over the Great Hall. It's very unlikely that such an attractive piece of real estate would remain undiscovered, especially since so much of Fraggle Rock has been explored. This suggests that the Rock magically changes its geography to suit the Fraggles' needs, a fact that becomes very important at the end of the series.
This episode also marks the introduction of Ms. Ardath and her Airedale Marigold, who serve as Doc and Sprocket's love interests for the rest of the series. Ms. Ardath moves into the neighborhood and opens a bed-and-breakfast, which infuriates Doc until he meets the charming Ms. Ardath.
According to a postcard from Gobo's Uncle Traveling Matt, Matt explores a bedroom of two girls named Jenny and Joanna, whom their mother orders to clean up their room. Meanwhile, thinking of this as a good hiding place, Matt hides in their toy chest as the girls tidy up their room and put their toys in the chest.