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Episode 1 Slumber Party Aired:
July 3, 1992
As the episode opens, a storm rolls in. At an unknown individual's house, several ponies are gathered for a game of charades. The "charader" shall I say, whose name is revealed to be Clover mistakenly speaks as the white pony with pink hair protests that the "charader" cannot speak. Clover gives another word but still the correct guess is not given. Finally, the correct phrase is given by a pink pony with yellow hair and the other ponies praise her. One of the pony's parents suggest an ice cream sundae should they have finished the game.

The ponies dart into the kitchen. The white pony with pink hair, whose name is revealed to be Sweetheart, remarks how good the slumber party is. The mother replies that it's the best. Inside the kitchen, as the ponies gather around the table with the now melting sundae, a kitten happily licks the drops of melting ice cream off the floor. Another one of the ponies, revealed to be Bright Eyes,  announces that ice cream is rich in protein, calcium and Vitamin A. (Should that have been true, then why is it "not healthy" to eat ice cream?) Sweetheart asks if she can put the cherry on top but one of the others says not yet and warns the others to stand back as she sprays them with whipped cream, which miraculously also lands on the sundae.

Finally, Sweetheart is given the OK to put the cherry on (which if I might add is rather puny compared to the sundae). Not a second afterwards, thunder and lightning disrupt the cheerful moment and knocks the power out. Another of the gang proposes ghosts knocked the power out but the father claims there's no such thing(I would think otherwise as ghosts have the capability of pulling the normally impossible).  A pink pony with light bluish hair notices that there's ice cream missing from the bowl and another replies that maybe it was the ghost. The others get a good giggle out of that. Finally the gang digs into the sundae(which I'm surprised is still there considering how long it sat out there). The mother tells them they must go to bed afterwards. In their sleeping room, one of the ponies imitates, I guess, their teacher Ms Hackney using a rather well crafted sock puppet. 
Sweetheart jokes around with the puppet, insisting she did her homework. Another pony tosses a pillow landing a blow on the puppet. This starts a pillow fight that has all of them having a blast until the mother comes in reminding them it's bed time and shuts off the light, leaving the room. The storm has everyone scared, except one, who recommends a ghost story. Clover and the bright pink pony with yellow hair disagree. They aren't scared are they? Others insist that they aren't and the peach-colored pony tells her story. After the story is over, several decide to investigate the noise they hear. The pink pony with blue hair reveals the name of the "leader" as Patch and tells her to wait up. The gang enters a cave. (It's a wonder how a pony can hold things without fingers as Patch has a flashlight in her hoof.) 
Sweetheart tries to turn the light on but to no avail. It appears the gang is looking for the pony mentioned in Patch's story named Squire and Basil the Dragon. They find who they think is Squire and or Basil and one pony (revealed to be Starlight) removes the sheet and it's only what appears to be a cage. One of the ponies begins a song about this situation. Once the song ends, despite the song's message, the gang shrieks at another object but it's only Springfield, the cat apparently from earlier in the kitchen. Back in their sleeping room, Squire's ghost appears, thanking Patch for telling his story and says he must go to continue searching for his dragon. He tells Patch to let him know if the dragon is found. Starlight awakens asking who Patch was talking to. Patch replies that she isn't talking to anyone, it was a dream. Or was it?