Elmo's nose becomes slightly larger and more egg-shaped. He has longer, messier fur that sticks out from all over the puppet, most noticeably his chin. This puppet also introduced a mechanism, through a wooden dowel, allowing Elmo's eyes to retract and protrude from his head, giving more expression to the puppet.
In the '90s, this puppet was recycled, given Mexican attire for use as Cousin Pepe on Sesame Street Stays Up Late.