Pferd has found a delicious apple, and he wants to save it for a special occasion. he decides that the special ocasion is now, so he eats it right away. After he has eaten it Pepe and Wolle comes by and he proudly tells them about the delicious apple he has found, they ask him were it is and he start to panic and can't understand were it has gone. Wolle asks him if he by any chance have ate it, Pfered realizes that he has eaten it and starts to cry.
Ernie portrays Robin Hood, who is setting up an audition trying to find some merry men.
A yellow fish dies, and the girl is feeling sad.
Wolle concludes that Pferd is sad because he ate the delicious apple. Wolle asks Pepe if he can use his magic to make Pferd happy, and Pepe are willing to try.
A sheriff tells a unforgettable story about Sid who had yellow teeth that he had to hide them behind a scarf.
Pepe first tries to cast a spell, but he cant' seem to remember the words, so Wolle asks him to look in his big spell book, however Pepe refuses claiming that he can easily remember such a simple spell. However the spell backfires and makes Pepe unhappy. Wolle wants Pepe to cast a new spell, however he is to sad to cast any spells. Despite being sad Pferd suggests Wolle that they should try and cheer Pepe up so he can cast a spell to make himself happy again.
In a attempt to cheer Pepe up Pferd has put on a party hat and blows in a party horn. But that did not work.
A girl is happy beacuse she has a Ice Cream, but her dog is sad. The girl drops the ice, becomes sad and the dog happy since it can eat the ice. They end up both being happy and play with each other.
The Big Bad Wolf has blown down the houses of the Three Little Pigs, so Kermit interviews them to know how they feel. The pig who made his house out of straw is angry, the pig who made a stick house is sad, but the one who made his house out of bricks is proud, because his house is still standing.
Wolle and Pferd tries to cheer Pepe up with a party song, so he can forget that he is unhappy long enough for him to cast the happy spell. They succed and Pepe are able to cast a happy spell before he becomes sad again. Afetr he has cast the spell he is happy, and Pferd discovers that he is also happy again, due to having concentrated on making Pepe happy.