Poky has once again dug a hole under the fence and wandered off from his siblings (having smelled something wonderful). He winds up on Sesame Street, where he gets into Big Bird's nest for a comfortable nap. Big Bird arrives and wonders who's been sleeping in his bed. He then takes the puppy to the stoop to meet Ernie, Bert, and Grover, who recognize the Poky Little Puppy as the literary celebrity he is (to which Poky modestly smiles and wags his tail).
The puppy's sense of smell finally leads him to Hooper's Store, where Cookie Monster (as current baker in residence) is preparing cookies. He graciously offers some to the Street's special guest star. Everyone enjoys a feast of milk, cookies, and Figgy Fizz to mark the occasion. At home, Poky's siblings think he missed all the fun (and rice pudding) but the Poky Little Puppy curls up contentedly, as flights of Twiddlebugs watch over him.