A very friendly but accident-prone octopus checks into the Furchester Hotel. As soon as Olivia the Octopus sets foot in the hotel, she starts knocking things and people over. Cookie Monster is announcing the soon-to-be-famous Furchester Cookie Tower, but Olivia cannot keep track of her arms and sends the tower flying. Elmo and Phoebe put their furry heads together and think of a way to help Olivia keep track of her arms so she won't keep knocking things over.