Kylie, Penelope's owner has a cousin named Ethan who comes to visit! Young Ethan and Penelope take an immediate liking to each other, and play and play all day until they both fall asleep exhausted and happy. Penelope soon decides that she wants to give Ethan something to show him that he is her new best friend! But she is so shy and Ethan is carefree and oblivious. The Ham-Hams try to help Penelope out of her disappointment and bring her to Ethan's school, where surprising news awaits the anxious and unsuspecting Penelope.