Written by Nancy Christensen
Illustrator Joe Mathieu
Published 1987
Publisher Ideal Toys
Series Big Bird StoryMagic

Goldilocks and the Three Grouches is a Sesame Street book retelling the story of "Goldilocks and the Three Bears" with Big Bird, Cookie Monster and Oscar the Grouch making up their own version. According to them, Goldilocks finds the little cabin, which is a dump, or a grouch haven! Goldilocks goes around cleaning and fixing everything, thinking that she is doing the residents a favor. When the residents appear, they are mad, because they are grouches.

The book was recorded for the Big Bird StoryMagic toy in 1987. Caroll Spinney performs Big Bird and Oscar the Grouch, and Frank Oz performs Cookie Monster. "Read a Little Every Day" and "You Better Stay Away From Me" are performed, both written by Dave Conner.