Ernie and Bert find themselves in Tiny Town, where they are tiny, and everything around them is enormous. They have fun playing with a remote-control car, and making friends with a giant puppy.
Bert and Ernie are now the world's greatest inventors, making their latest creation. They name their new robot Frankie and begin commanding it to do things, such as squeaking Ernie's rudder duck or yodeling.
Elmo accidentally turns Marlon the wizard into a frog. Bert, Ernie and Elmo go off to track down a feather from the two-headed Fangriff which is needed to revert the magic spell.
Bert and Ernie visit their friend Doug in Invisible Land, where nobody can be seen. They're having fun until they're asked to babysit Doug's little sister Zippy.