Auntie Jules's latest hobby is knitting and the kitchen is full of her creations, some of them stranger than others. Mr Yomper Stomper arrives. He wants to take a photo of a giant woolly carpet caterpillar.

Off he goes to the meadow with Elsie and Josh, but when they find the caterpillar it gets scared and runs into a rabbit hole. Grandpa puts on his Shrinking Cap, goes down the hole and rescues the little woolly caterpillar.

Grandpa tells the children that the caterpillar needs to be left in peace so he climbs into one of Auntie Jules's knitted bedsocks and pretends to be the caterpillar. Mr Yomper Stomper gets his photo but now he wants to keep the caterpillar. With help, Grandpa escapes and this time pretends to be a butterfly! Show less