Pee-wee looks at his toy shelf. Then Pterri sends Pee-wee a big piece of foil he found wrapped around a baked potato which he found at a nearby restaurant. Pee-wee places the foil in his foil ball, and then plays with Pterri.
Mr. Window asks Pee-wee what today's secret word is. Pee-wee activates Conky 2000 for the day, who reveals the secret word: little. Pee-wee tries the secret word on Mr. Window and asks him what is the opposite of "big". Mr. Window synonymizes the answer until Pee-wee corrects him frustratedly, and everyone screams when he says "little" as a result. For snack time, Pee-wee cooks up a delicious salad.
In a Connect the Dots segment, Pee-wee makes a tree. Later, Reba sends Pee-wee a package. Pee-wee opens it and reveals a magic kit. Dixie arrives and Pee-wee shows her what he got in the mail. Dixie plays the trumpet and calls in the King of Cartoons, who plays Smile, Darn Ya, Smile (Merrie Melodies, 9/5/1931).
Pee-wee's friends come to the Playhouse to watch Pee-wee's magic show. Tito introduces the great magician, which is, of course, Pee-wee Herman. He enters with his levitation trick. For his next trick, Pee-wee waves his wand over an empty vase and a bouquet of flowers appears. And for the grand finale, Pee-wee makes himself disappear, amusing the crowd, wondering where he has gone.
Pee-wee is now invisible. Pee-wee plays a trick on Mrs. Steve, who is entering the Playhouse. Hungry, she sees a chocolate cake. She cuts a slice, but just before she takes a seat on a stool, the cake moves to the stool and Mrs. Steve squashes the cake, which is stuck to her butt. Conky makes a joke about the event. She leaves the house while the invisible Pee-wee eats the slice of cake. Just then Knucklehead calls for a knock-knock joke, but backfires when Pee-wee scares him away. Then Miss Yvonne enters as well, thinking she's imagining Pee-wee's voice and giving up.
Randy thinks he'll be invisible forever; no will know him anymore. Pee-wee hears and denies it, and claims that he can make himself visible whenever he wants. Pee-wee looks it up in his magic book. He has to send $9.95 (a nickel short of $10) to the magic company and allow 6 to 8 weeks for delivery. Pee-wee is shocked and can't believe it.
After a Penny cartoon, Magic and Conky calculate for Pee-wee. Conky states that according to his calculations he'll be invisible forever. Pee-wee frantically denies this and becomes sad. Jambi asks him what's the matter. Pee-wee tells him the problem, and wishes to become visible again. Jambi doesn't think he can mix different magics, as it could be dangerously tricky, but Pee-wee allows him to try. He asks the Playhouse denizens as well as viewers at home to repeat his magic words after him. Pee-wee reappears but he has no head. The doorbell rings. The headless Pee-wee sees the salesman, who is terrified when he sees him.
Pee-wee returns and asks Jambi to return his head. Jambi grants his wish and Pee-wee runs to the mirror and is completely visible, and everybody misses him a little. Pee-wee finally leaves through the scooter eject.
- Reba delivers the magic kit. Later, Cowboy Curtis, Miss Yvonne, Mrs. Steve, and Captain Carl come to the magic show.
- Tito is the assistant.
- This is the first time that Dixie announces the King as "the King of Cartoons"; in early episodes it was "King Cartoon".
- When Jambi recoils at Pee-wee's headless body, the sound used is the classic transporter sound effect from Star Trek: The Original Series.
- When Pee-wee takes the first bite of his salad, he says "The salad is a little dry," and no one screams even though the secret word is little.
- Knucklehead's joke backfires in this episode.
- Only time where Pee-wee scares the salesman away he had no head the first time Jambi tried to make him visible again.
- After the salesman leaves, the door doesn't close.
- In the refrigerator, the Crinkle Cuts resemble the Beatles.
- Secret word: little
- Connect-the-dots: tree
- Snack: salad
- Wish: To be visible again.