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The King Banishes the Letter P is a Sesame Street story told by Luis and performed by the Anything Muppets. (First: Episode 0712) The insert was written by David Korr.

King Peter the Persnickety, after getting hurt by a ping pong ball and his pet porcupine, makes a proclamation that all items beginning with P are to be banned from his kingdom. However, the proclamation prohibits King Peter from enjoying his favorite meal, peanut butter and pickle pizza, his daughter Princess Penelope is taken away, and he loses his palace as well. After he realizes what he's done, King Peter decides to allow P items into the kingdom once again.

When the segment was included in the home video Learning About Letters, the parts with Luis were replaced with new linking footage of Luis reading the story as part of the plot. Its next appearance on the show would use this edit of the segment.