The show began with Martha driving a huge van decorated with yarn and crocheting needles. Martha reveals it's Poncho Day and that she has the world's fastest crocheter making a poncho for her dog Paw-Paw.
Everyone in the audience and all the producers are wearing ponchos. Martha reveals it's poncho day because of the poncho she got from a fellow inmate at Alderson named Ziamara Hernandez whose daughter was in the audience. She also reveals she taught yoga at Alderson. The poncho obviously became well known and she reveals her company has made one for sell on marthastewart.com and all the proceeds go to women and children's funds and Hurricane Katrina relief.
Martha then segways to special guest David Spade, who played her on a recent episode of Saturday Night Live. David walks out in a poncho and wig just like Martha's and carrying 2 stuffed dogs like her two real dogs and a fake ankle bracelet. Martha then teaches David how to fold a shirt as she did Marcia yesterday.
Martha then teaches David some of her favorite microwave dishes. Martha tells the audience that David is Kate Spade's brother in law and the two talk about David's upcoming Comedy Central show Showbiz Show. The two begin coring apples and talk about how Martha "stole" spices while in prison and they make nachos she learned to make at Alderson and other quick treats, like grilled cheese sandwiches in the mircowave as well.
Martha then introduces us to a family of crocheters that includes a 10 year old. Also a baker has made Martha some cookies including one dressed as a convict.
Elmo comes on to help make lunchboxes and lunch bags with Martha but meets up with Martha's dog, Franchesca who thinks he's a toy to play with. He almost rips off Elmo's arm. Elmo is also wearing a poncho like Martha's as well.
Lily Chin, the world's fastest crotcher reveals that she has finished Paw-Paw's poncho.Elmo reveals that Sesame Street is going to talk about the Hurricane. Elmo also remade his song "Elmo's World" to be "Martha's World".
Lily Chin finishes her poncho for Paw-Paw and reveals that tomorrow the guests are Jay Leno and Susan Lucci.