Summary: Darrin's parents, Frank and Phyllis Stephens, come to see Tabatha. Learning Endora will also be there, Darrin makes her swear there is nothing funny about the toy bear she has brought for the baby. Endora and Mrs. Stephens take an immediate dislike to each other. Mrs. Stephens has brought a toy identical to Endora's. Endora uses witchcraft to make her bear dance. Tabatha falls in love with the dancing bear and refuses the other. Mr. Stephens sees a fortune to be made in the dancing bears. Darrin, knowing the bear performs through magic, tries to distract his father, but fails. Mrs. Stephens, still hoping to one up Endora, buys a toy tiger.

Mr. Stephens arrives with Mr. Hockstedder, a toy manufacturer, who wants to buy a large quantity of the dancing bears. Then Samantha declares she doesn't want the toys to be mass produced because she feels Tabatha should have a unique toy. When Mrs. Stephens and Endora back her up, Hockstedder decides they are all mad. When Tabatha stays up watching her toys, Samantha sets them dancing to a lullaby. Soon Tabatha and Darrin are both fast asleep.