Trading Places is the fifth episode of season four along with the episode House of Sand and Frog which comes right after it. Trading Places first aired on June 26, 2010. The episode is written by Kathy Waugh and story boarded by Doug Thoms.
The title card of Trading Places depicts Peep, with two large orange butterfly wings that have a large yellow dot on the upper and lower sections, flying forward while swinging his legs. The background behind Peep is in a style reminiscent of a child's drawing and consists of an orange sky, short green hills, and a few large, simplistic yellow-centered flowers with large green leaves that have curved pink or orange petals. The rest of the title card is light blue with the words "Trading Places" located at the top. "Trading" is written in purple text with "Places" being placed underneath, slanted partly horizontally to the right, in slightly larger red text. Placed beneath "Trading Places", in black text, is "Written by Kathy Waugh" over top of "Storyboard by Doug Thoms", with the former being slanted horizontally to the left.
Peep wonders what it would be like if he and his acquaintances were different animals and has a dream where that fate is so. While Peep as a butterfly, Chirp as a duck, and Newton as a squirrel are glad for their new forms, Quack as a turtle is not and sends an ant to get Peep to awaken. Peep does and tells of his dream, amusing the characters involved.
The episode opens showing a partly far away glimpse of Newton's tree with Peep and Quack sitting down under it, close to the trunk, and Newton standing up a short distance away eating an apple while Quack proceeds to consume sunflower seeds. Peep casually asks Newton if he ever wondered about being a chicken instead of a turtle and, after an unenthusiastic response from Newton, tells of how he wonders what it would be like if he was a butterfly, Chirp was a duck, Newton was a squirrel, and Quack was a turtle. The animals begin to talk about being different creatures, Quack wishing to stay the same but Newton pondering the thought, and eventually all three drift off to sleep. Peep begins to dream and in his dream he posses butterfly wings and looks down from his perch on a flower to see Quack as a turtle, complaining about his fate.
Peep sees Chirp in the distances, as a duck, and flies off to greet her leaving Quack, now considerably slowed because of his shell, to attempt to follow him. While slowly journeying to Peep, Quack encounters an ant who, after scolding Quack for almost crushing him and being later saved by the duck from falling apples, is persuade to find Peep and tell him to awaken so that Quack can be a duck again. Meanwhile, Chirp and Peep are enjoying their new benefits brought by their changes and head off to go swimming, just as the ant catches up to them. While on their way, Peep and Chirp encounter Newton who is now a squirrel in a large tree and, after the two help Newton become more confident as a squirrel, continue their journey, once again as the ant catches up to them.
The two eventually reach the pond and after Peep encourages Chirp, she steps into the pond and begins to swim. Shortly, the ant appears and after a short rests, tells Peep what Quack wants. Peep pities Quack and tells Chirp he is going to awaken, whereupon the robin tries to stop Peep, but to no avail. Peep's wings slowly begin to shrink and he awakens in a panic about Chirp in the pond, only to find her in good health and hopping towards the tree. Peep than tells what transpired in his dream which gives Quack amusement at Chirp being a duck and prompting the robin to defend herself, and Newton to be glad that he had enjoyment as a squirrel. The episode ends with Newton expressing his thankfulness and Quack yawning while the camera beings to zoom out.
- Most of the scenery in Trading Places differs from the standard appearance but is instead a portrayal of some of the typical places of Peep and the Big Wide World in a style reminiscent of children's drawings.