As Elmo en-acts as a game of miniature golf around Sesame Street, his golf ball (actually a beach ball) lands in the middle of Betty Lou's pretend tea party. Betty Lou imagines the ball is actually a prince named Ted, who was put under an evil spell by a wicked witch. Since Elmo needs the ball, the two reach a compromise - Elmo can finish him game, which will in turn break Ted's spell and return him to normal.
Once Elmo reaches the end, Betty Lou's dolly decides to forgo marriage to Prince Ted, wishing to finish school first. But what will become of Prince Ted? "He'll be sad at first, but he'll get over it and write a book about it," she states. As everyone heads off to Betty Lou's tea party, the beach ball magically transforms into Prince Ted. He calls out for his princess, though opts to take a lie down first, claiming to have a horrible headache (from Elmo's golf club).