A girl named Ladonna and her family move to Elwood City and she begins attending Lakewood Elementary, where she tells Arthur and his friends stories about her life. Everyone finds them interesting at first, but when they start to repeat and she begins fabricating stories, she may lose her friendships. Meanwhile, Ladonna's little brother Bud tries everything he can to become D.W.'s friend.
This was the first episode to be broadcast in 16:9 in all regions (13-15 had 16:9 prints, but were broadcast cropped to 4:3 in the US), produced by 9 Story Media Group, and use Flash animation.
This episode contains the following tropes:
- Crying Wolf: When Ladonna is forced to make up a story after she runs out of new ones to tell her friends, her story is soon exposed as untrue and most of the main characters shun her, seeing her as a liar. When she tells them about how her hat was stolen by a raccoon, they don't believe her, and she and Arthur work to prove that it really did happen.
- Death Glare: When the Tibbles are annoying them, Bud gives them a "power stare": making an assertive stance and staring them down. The Tibbles are creeped out and run away.
- Dude, Where's My Reward?: Ladonna finds a gold watch in the snow. She then tracks down its owner's wife, who says that it had been lost for seven years, and returns it. Ladonna is rewarded with... four quarters, and she's not happy about it.
- Establishing Character Moment: For Ladonna, this comes in the episode's Cold Open. Arthur is walking in the background, calmly welcoming the audience, when Ladonna pops up in the foreground, talking rapidly about all the exciting stuff that'll be in the episode. They then have a friendly conversation afterwards about what if she said is true. This establishes Ladonna as one of Arthur's more outgoing friends, with an interest in telling wild stories.
- Motor Mouth: Ladonna speaks rapidly and goes off into long tangents if she isn't stopped. For example, when Arthur brings her a rhubarb pie, she instantly begins going into her Big Eater habits, then hatred of beets, then invites them in for sweet tea, then suggests they go exploring in the woods, if there are any.
- Shout-Out: The pocket watch arc is based on To Kill a Mockingbird. In the book, Jem and Scout get a pocket watch as a gift by Arthur "Boo" Radley, which Atticus assumes isn't worth much (ten dollars). In this episode, Ladonna finds a pocket watch engraved to "Art Radley". She returns it, and ends up with only a dollar.
- Shown Their Work: Ladonna's brother used to work at an alligator sanctuary when they lived in Louisiana. Louisiana is the state with the highest alligator population, tied with Florida.
- Somebody Doesn't Love Raymond: Bud is initially confident that he'll make lots of new friends since everyone likes him, but he can't get D.W. to like him no matter what he does. He eventually earns her respect by standing up to the Tibble twins.
- Tempting Fate: When Bud asks Ladonna what will happen if she runs out of stories to entertain her new friends, Ladonna dismisses him, saying the Atlantic Ocean will dry up before that ever happens. The next day, she finds out that she really has run out of stories, since Arthur and Buster remark that she's told them a certain story before. Cue an Imagine Spot of a plug being pulled out of the Atlantic Ocean, draining its water.
