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, who reveals 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". For snack time, Pee-wee cooks up a salad bar 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, who 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 seat. 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 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, Conky calculates Pee-wee, stating 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 it will be easy, but he'll try. He asks the 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 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.