A fairy godmother turns Cookie Monster into a handsome prince. He thinks it's ugly, and uses the wand to change her into her original form, Herry Monster wearing a wig. As monsters, they fall in love.
An Anything Muppet boy meets Alphabet O'Malley, whose full name consists of twenty-six first names, each one starting with a different letter of the alphabet.
Cookie Monster hangs his head down in sadness. Ernie gives a lengthy speech on how looking up is the key to happiness. While his head's in the clouds, Cookie looks up toward Ernie's cookie box and empties it, making him happier.