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Rudy feels frustrated because he made a mistake on his drawing. Alan helps Rudy calm down and encourages him to keep trying. Rudy suddenly gets an idea from his mistake and by using his imagination, he changes his drawing.
There's a new friend on Sesame Street! Charlie just moved into the neighborhood. Her parents were in the military, so they moved around a lot. Now Sesame Street is their new home. Elmo and Rosita show Charlie around and she learns that Sesame Street is a place where anyone can be friends no matter who you are.
Charlie is counting everything on Sesame Street so the Count decides to leave, thinking he's not needed anymore. But there's too much to count for Charlie on her own so she asks for the Count's help. Charlie explains that she loves to count but she could never take his place. The Count agrees to stay and he and Charlie continuing counting together.