The Treasure of Grundo is the 1st episode of The Adventures of Teddy Ruxpin series.
The episode begins with Teddy and Grubby arriving in Grundo for the first time. As they travel, they notice that the land is much different than their native land of Rillonia. This leads into their discovery of the Fobs, the small, bird-like inhabitants of Grundo.
Afterwards, the two stop to rest for a while near Bounder Pass, where they are nearly caught by the Bounders who are seeking to capture them. While running away from the Bounders, Teddy and Grubby run into Gimmick, who is collecting firewood nearby. Using the firewood to jam up the Bounders' wide mouths, he is able to stop them and introduce himself to the duo.
Gimmick takes them to his house in the aptly named Gimmick's Valley where Teddy and Grubby explain how they discovered their treasure map, and how they are seeking to find the treasure hidden in the ancient Hard to Find City in the Treacherous Mountains.
While the three talk, L.B., the leader of the attack of Bounders, goes to Tweeg's Tower, the home of his boss. As Tweeg demands to know why once again L.B. has failed to run Gimmick out of the Valley, L.B. explains that he has visitors. Tweeg decides that they are after his formula to turn gold into buttermilk and demands that L.B. go down to spy on them.
As the three continue to discuss, Tweeg fires and painfully misses with his cannon shots at them. Gimmick explains that Teddy and Grubby should not worry, as Tweeg does this often, and always misses. Teddy continues to explain the story of the map, and shows Gimmick a medallion that reads "Spirit Treasure Ledge". Unable to decipher it, Gimmick offers to show the two his newest invention that will help them on their quest.
Gimmick brings them to a large wooden boat with wheels and an airbag which he has named The Airship. He explains that they can easily ascend the mountains in the ship, and it will save them much time. Teddy explains that Gimmick may have a fair share of treasure in return for the use of the Airship, and they all ready the ship to leave.
As Gimmick goes to get supplies for their journey, L.B.is able to take the treasure map from him without notice. After a literal run-in with Tweeg, he gives him the map. After making a fake one, Tweeg instructs L.B. to leave the map for the three to find and use instead, which they do. Once the map is with them, they cast off and begin to fly.
Though they are able to get the Airship to fly, they soon realize that they are unable to steer it, promptly crashing into a tree. Once stuck, Leota the Woodsprite flies to the ship and demands to know why they are there. After a brief spat with Gimmick, Teddy properly introduces the trio to her. After offering her help, Leota instructs them on how to turn the ship by means of building a rudder system. Once they have the Airship ready, they set sail again on their journey.
Tweeg and L.B. set their course for the treasure at the same time the three come upon Trembly Fault, a sign that they are travelling in the complete opposite direction. Teddy and the others realize that the map has been faked by Tweeg, who has also been delayed by a gaggle of Fobs throwing L.B. off. Still lost, the three end up in the Great Desert, dangerously low on firewood to keep the ship afloat, The episode ends as Teddy, Grubby, and Gimmick crash into the sand.