Pinocchio is a wooden puppet whose major claim to fame is that his nose grows longer when he tells a lie; people come from miles around to see it.
In a "Sesame Street News Flash" sketch, Kermit the Frog asks Pinocchio for a demonstration. The puppet says that he's Abraham Lincoln, and he's 50 feet tall; the lies make his nose grow longer. When he sees that Kermit is impressed, he claims that he's a thousand million years old and that he can lick Superman. Then he tells the truth again, and his nose grows shorter.
But he can't resist showing off once more: "My name is Cinderella," he cries, "and for breakfast I ate two dragons! And then I ate the whole world, and then I sat on the Moon, and then then I became the President of the United States!"
Kermit tries to calm Pinocchio down, but he can't help himself: "And then I drank a million trillion glasses of milk, and then I ate airplanes, and I put the Sun in my pocket!" His nose grows so far that it pushes Kermit through the wall.
At the beginning of the sketch, Pinocchio says hello to his mother, the Oak, and the saplings, Myrtle and Magnolia.
Behind the scenes
The effect of Pinocchio's nose growing longer was done by sticking the puppet to the wall, putting a hole through the center of the puppet's head, and pushing a lavender-colored broom handle through the hole.