At Glasshouse Primary School, Calypso steps in to mediate a dispute between Rusty and the girls, Bluey, Indy, and Honey. The girls had been engaged in a game of Baby Hospital, where they were pretending to deliver babies, complete with fake pregnant bellies and pouches, and even announcing the baby’s gender. They had also set up an incubation crib and handwashing station to care for Indy’s “early baby”, which had arrived prematurely, just like her real-life sister. After reassuring Indy that she would have to be brave, they were interrupted by Rusty, who appeared with the “early baby” and asked if they had any crutches.
Rusty explains that he and Coco were building a castle when a dragon, played by Snickers the sausage dog, appeared and demanded a villager as a sacrifice. The king’s daughter, who was chosen as the sacrifice, told her father that they would both have to be brave. Rusty then became a knight and set out to rescue the king’s daughter from the dragon. During the battle, they swapped the wooden doll for Indy’s “early baby”, and the knight emerged victorious, but not without getting injured. This injury led Rusty to arrive at the Baby Hospital, which is why he was looking for crutches.
Now that the girls understand Rusty’s game, they want to join in and play with knights and dragons. Everyone decides to play together, and the dispute between Rusty and the girls is forgotten. Even Indy and Rusty, who had been arguing earlier, are now happy to play together, and they all run off to continue their game.
