It is the fifty-third episode in the series.
Grumpy must change his grumpy ways or suffer the wrath of a witch's curse.
The episode starts with the 7D hauling a huge statuette of Queen Delightful made out of cheese from their cottage to the castle, while being supervised by the sculpture's creator Grumpy; he ignores their complaints about him not helping them moving the heavy load. The 7D then loses control of the load, and they along with the statuette are barreling fast down the hill towards a bridge, where an old woman and her pig Mindy are in its path. The 7D and the statuette finally stopped in front of them at the nick of time. Grumpy is angry at the woman for not moving out of the way, and as they engage in arguing with each other, the cheese Queen Delightful begins to melt under the sun; and Grumpy fails to save it, leaving him completely covered in melted cheese. He then blames the woman for the mishap, and he suddenly went into a "profane" tirade towards her, shocking his friends. The old woman then reveals herself to be a witch, and says that if Grumpy can't have a positive attitude, he will be turned into cheese.
Later that day, a concerned Delightful arrives to check on Grumpy after hearing the news about Grumpy's meltdown. As Dopey covers Grumpy's mouth with his hand, Doc tells Delightful he wants to be left alone. Delightful suggests that Grumpy should apologize to the witch to avoid the curse, and he (reluctantly) agrees. Grumpy then meets the witch along with the 7D and the Queen. The witch accepts Grumpy's apology and lifted the curse—on the condition that he will give Mindy a kiss as she felt that Grumpy had also offended her. Grumpy angrily refuses and again called the witch with the same "profane" words he had used earlier, prompting the witch to reinstate the curse. Back at the cottage, Doc asks Happy to remain with Grumpy and change his grouchy attitude while the rest of the dwarfs go out. Happy then sings a song to do just that, driving Grumpy crazy.
Doc, Sneezy, Sleepy, Bashful and Dopey return from picking green beans for dinner to find a new and improved Grumpy, who politely offer them cookies. While his pals are eating dinner, they did things that would have usually annoy him, but instead Grumpy seems restraint and friendly. However, his remarks all seemed to be forced, and later Grumpy left all his friends behind to a remote island, leaving behind a note saying that he can't stay friendly any more. The 7D search for him to no avail, but later Bashful decides to go to the witch to sort out the entire situation. Surprisingly, Bashful overhears the witch in a conversation with her friends that she lied to Grumpy about being a witch to teach him a lesson.
When his decision didn't plan out the way he wanted it to be, Grumpy returns home. He apologizes to the 7D for his actions and admits that everything annoys him, but he rather have his friends by his side. Bashful tells him that the woman told a fib about being a witch, Grumpy went over to confront her. Now the woman is angry at him; a man who claims to be a wizard overhears her and warns her to be nice or else she'll be turned to wood, prompting her and Mindy to run away. Grumpy then says that she deserves a second chance, but the "wizard" only reveals himself to be just a hat salesman, so Grumpy ends up thanking him. Then the episode ends with the 7D saying "Hi-ho!" in unison.