Before the game begins, Ernie gives Big Bird a clue to his whereabouts by acting out "Old King Cole," complete with a fatigued Muppet lackey ("That Old King Cole is a royal pain!"). Big Bird is transported to a world populated by nursery rhyme characters. He first meets Humpty Dumpty, then the Three Little Kittens, who despair at the loss of their mittens and Ernie. Big Bird also helps the Old Woman Who Lives in a Shoe count her nine children, who all make up a capable baseball team. The Two-Headed Monster appears to act out "Little Boy Blue," with each head blowing the horn in the other's ear. Finally, Little Bo Peep comes by, followed by a suspicious-looking lamb — Ernie in sheep's clothing! After Big Bird and Ernie sing their closing song, Bo Peep's actual lost sheep appears, explaining that he was playing "hide-and-sheep."
For the segment's inclusion in the special The Street We Live On, the prologue is omitted. Instead, Ernie and Big Bird appear in Elmo's World to set up the segment.
