The opening theme song to Pee-Wee's Playhouse plays, but it stops abruptly, due to Pee-Wee realizing that he's forgotten something: he's redecorating the playhouse!
Pee-wee redecorates the playhouse and invites his friends over to help because the full opening was not shown. His new ventriloquist dummy, Billy Baloney, asks him what today's secret word is. Pee-wee finds Conky under the tarp. Conky gives him the episode's secret word, which is "house". Just when Pee-wee's about to try it, Pterri has a question: Does everyone still scream is the secret word is part of another word? "What do you mean?" Pee-wee asks. "Well, what if someone says 'playhouse'?" Pterri asks, and everyone screams. "I guess that answers your question, does it?" Pee-wee replies. He asks everyone to scream even louder when someone says "playhouse".
Pee-wee tricks everyone into cleaning up by pretending that the work is fun. While Cowboy Curtis and Ricardo are working in the bedroom, they move the teepee, and see a piece of the bedroom floor come to life, causing Curtis to whoop in surprise. The talking floor piece is named Floory, who has who hasn't spoken or been seen for a long, long time (not even for the whole first season). Then Reba delivers a package from the Wacky Clock Warehouse. Clocky is new for this episode. Pee-wee finds a piece of foil, but realizes his foil ball's oversized and donated to a foil museum. So, he finds a rubber band for his rubber band ball. After redecorating, they have a tea party and play London Bridge. Everyone meets Pee-wee's new neighbor, Mrs. Rene.
- Many viewers thought Conky displays the two secret words HOUSE and PLAYHOUSE, like in the Season 4 episode Heat Wave.
- The secret word is now typed on a piece of card stock big enough to fit the whole word capitalized, however the word flashes on screen in all lowercase letters.
- This episode marked the first time that the flowers announced the King of Cartoons' arrival. In Season 1, Dixie played her trumpet or called with dialogue to introduce the King of Cartoons.
- The scene showing Pee-Wee and Miss Yvonne making sun tea and cookies were cut from initial home video releases, and television airings on Fox Family.
- First appearance of Herman's scooter helmet.
- This may have been in part due to America beginning to pass helmet laws. California became the first state to do in 1987, which was also where production on the show moved to in that year; the first season was shot in New York.
- The reason why this episode was produced was because the show moved from its New York City warehouse studio to facilities at the Hollywood Center Studios, creating changes in personnel, slight cast changes and a change to the set that allowed the show to take advantage of the additional space. The show changed production facilities again in 1989 during its fourth and fifth season, this time at the Culver Studios, also in Los Angeles.
- After the show ended, the set was stored away at the Culver Studios; it would later be reused for several informercials for the special edition Playhouse VHS collection.
- When Pee-wee reads the name of the place where he got Clocky, he says the word warehouse, but no one screams even though the secret word is "house".
- Pee-wee tricking everyone into cleaning up by pretending it's fun rather than work is a nod to the famous fence-painting scene in the book "Tom Sawyer".
- The full opening was not shown, due to Pee-Wee redecorating the playhouse.
- First appearances of Ricardo, Mrs. Rene, Floory, and Clockey and revised Globey.
- William Marshall takes over the role of The King of Cartoons from Gilbert Lewis. Johann Carlo left the show so Dixie no longer appears.
- First appearance of Pee-Wee's athletic friend Ricardo. Rather than be a lifeguard, Ricardo is a pro soccer player and competitive dancer.
- The King of Cartoons now shows cartoons on a TV (that he purchased for Herman) with a special remote.
- Cowboy Curtis, Miss Yvonne, Reba, Ricardo, and Mrs. Rene visit in this episode.
- First appearance of Pee-Wee's ventriloquist dummy Billy Baloney.
- Pee-wee donates his foil ball to the foil museum and starts a rubber band ball instead.
- This marked the first time that Pee-wee began wearing the helmet, when he leaves on his scooter at the end of this episode. In Season 1, Pee-wee does not wear a helmet when he leaves on his scooter.
- Starting with this episode, Pee-wee flies past Mount Rushmore on his scooter in the closing.
- The toy shelf from Season 1 makes a surprise cameo among the pile of stuff Pee-wee gives away. Clocky takes the toy shelf's place.
- Secret word: house (playhouse)
- Connect-the-dots: none
- Snack: sun tea and cookies
- Wish: Jambi wishes for another cup of tea