Mister Rogers arrives with a blanket which he has just picked up from the cleaners. Unfolding the sofa bed and using the blanket to cover it, Mister Rogers sits and talks about the feelings children have about blankets and teddy bears. He then sings Please Don't Think It's Funny and shows a film about how people make blankets.

In the Neighborhood of Make-Believe, Neighbor Aber gives the Trolley a free sample of the C.A. Blanket Company's trolley blankets. X the Owl jumps at the chance to go into business with Neighbor Aber.