thumb|300px|right|The story of "Snow Grouch and the Seven Dwarfs". Snow Grouch is a Grouch portrayed in the Sesame Street fairy tale "Snow Grouch and the Seven Dwarfs", a spoof of the "Snow White" story read by Oscar the Grouch to his niece Irvine.
The fairy tale tells the story of a Grouch Queen (portrayed by Grundgetta), who is the Grouchiest Grouch in all the land. She knows this because she asks her magic mirror the same question every morning: "Mirror, mirror, on the wall, who's the grouchiest of them all?" The Magic Mirror always responds with "You are Queen. You're the Grouchiest Grouch in all the land". The Grouch Queen's daughter, Snow Grouch, with every single passing year, got grouchier and grouchier. The morning after Snow Grouch's 18th birthday, the Queen asks the usual question, but this time the Mirror responded with, "The Grouchiest one in all the land is Snow Grouch".
Jealous, the Queen banishes Snow Grouch from the Kingdom -- or as Oscar puts it, "She told Snow Grouch to get lost!" Snow Grouch goes to live with the Seven Dwarfs, in their cottage in the woods.
The next morning, the Queen asks the Mirror her usual question, sure that since Snow Grouch was gone, she was once again the grouchiest in the land. But Snow Grouch is still the grouchiest of them all; she's making the Dwarfs' cottage messier every day and throwing the Dwarfs out of their own cottage because she wants them to get lost, and so she could take her daily mud bath in peace.
The furious Queen tricks Snow Grouch into taking a bite of a magic sour lemon, which will turn her into a nice Grouch. After she bites the sour lemon, Snow Grouch starts cleaning up cottage, which made the Grouch Queen the Grouchiest Grouch in all the land once more. But as luck would have it, a Grouch Prince (played by Oscar), who rode in on his dusty white horse, sees Snow Grouch cleaning the cottage, enters and yells -- "Hey, you! Snap out of it!"
With these words, the magic spell is broken, and Snow Grouch is a true Grouch once more. Snow Grouch and the Prince decide to get lost together, living grouchily ever after.