Released: Winter 2003
Articulation: Neck, ball jointed shoulders (four), hips
Accessories: Beach chair, scuba mask, snorkel, flippers, fabric swimming trunk, tropical drink, elephant inner tube, base
Pepe wears removable scuba diving wear and a trunk. The elephant shaped inner tube is a tribute to Pepe's pal Seymour from Muppets Tonight. The beach chair is a recycled version of the chair that came with the regular Pepe Action Figure, with different colored seat.
Two different Vacation Pepes were produced. Pepe with the red Bermuda shirt, red diving wear and gray inner tube was sold through Toyfare Magazine. Pepe with the blue shirt, green diving wear and pink inner tube was sold by Musicland.
A Vacation Fozzie Action Figure was produced one year earlier.