|Release Date|| February 1998 (VHS)|
|Produced by||Sony Wonder|
While Maria fixes the float, Gabi prepares the costumes. Elmo and Rosita can't decide which costume to wear, but finally settle on bugs. Oscar is dragged into a guessing game and accidentally answers correctly.
The children, Elmo, and Rosita practice the conga. Elmo adds a "Wiggle-wiggle" into the dance, and after some debate, the whole group decides to wiggle too.
Finally, Maria manages to fix the float, but Elmo accidentally breaks the float again. He promises to get a new float...somewhere.
While all the kids are sad because they don't have a float anymore, Elmo brings a pineapple, saying that - just like Cinderella's carriage - a fairy godmother would turn the pineapple into a float. Gabi and the others don't believe Elmo's story. He calls for a fairy godmother, at which point Oscar arrives in the Sloppy Jalopy. He refuses to help by lending the car for the carnival, but Gabi points out that the car would be decorated "with great looking trash". Oscar finally relents and allows his car to be used as a float.
Maria dresses as a Queen Bee, and announces the beginning of the carnival.
- "Numero Comparsa" (featuring Celia Cruz)
- "Amigo" (second verse cut out)
- "El Baile del Pinguino"
- "Conga Counting Song"
- "It Sure is Hot!" (Hace Calor)
- "South America Way" (second verse cut out)
- "La Charreada" (featuring Linda Ronstadt) (introduction cut out)
- Desiree Casado (Gabi)
- Amy Tai
- Nicole Rifkin
- Nicholas Sullivan
- Maxwell Sacoto
- Xavier Pritchett
- Executive Producer: Nancy Kanter
- Produced by: Karin Young Shiel
- Writer: Luis Santeiro
- Segment Writers: David Korr, Sarah Durkee, Paul Jacobs
- Director: Emily Squires
- Segment Directors: Lisa Simon, Jon Stone
- Jim Henson's Muppet Workshop: Mark Zeszotek, Lara MacLean, Kip Rathke, Stephen Rotondaro
- Songs by: Fernando Rivas, Luis Santeiro, Brito Duarte (Ernesto Duarte Brito), Sarah Durkee, Carol Hall, Paul Jacobs, Joe Raposo
- Production Designer: Victor DiNapoli
- Costume Designers: Bill Kellard, Terry Roberson
- Graphic Designer: Mike Pantuso
- Set Decorator: Nat Mongioi
- Music Supervisor: Dave Conner
- Audio: Blake Norton, Carla Bandini-Lory