Dipsy is out for a walk before the windmill spins. The Teletubbies watch some children make animals using paper mache. A little lamb appears from far away. The little lamb feels sad. The Teletubbies want to make the little lamb happy. So Laa-Laa does a dance, Tinky Winky brings it over to the flowers, Dipsy lets it wear his hat and Po even lets it ride her scooter. But after all that, the little lamb is still sad. Suddenly, the Teletubbies hear a noise. Then another little lamb appears which makes the little lamb happy. Both the little lambs then leave Teletubbyland and then it's time for Tubby Bye-Bye.
- The Little Lamb segment was featured in the VHS Animals Big and Small.
- The Little Lamb also appears in the Playstation/PC game Play With The Teletubbies, the PC game Teletubbies: Favourite Games and the phone app Teletubbies : My First App.
- Laa Laa was the missing teletubby.
- Tinky Winky was the boo shouter.
- In the Little Lamb scene, The Magic Windmill can be seen leaned over in the background.