Here Thar Be Dwarves! (S03E15)

While enjoying a picnic in the woods, Billy finds himself ambushed by Yogi and a wild, oversized Boo-Boo, forcing him to flee into a cave. Inside, he encounters the dwarves in their mushroom domain, where King Beardbottom shares the tale of how different races divided the food industry post-Rivendell conference. The king tasks Billy with sneaking into the elves' cookie factory to disable their protective barrier, allowing the dwarves to launch an attack. After a chaotic skirmish—censored for young viewers with a clip of a pink koala munching on eucalyptus—Billy's plea unites the elves and dwarves, leading to a partnership in profit-sharing.