The Butter Problem is an episode of Peg + Cat. The episode begins on the farm. Peg and Cat are there and Peg is explaining that a butter-sculpting contest will soon take place. Peg then notices the farmer on the top of the stage. Peg asks why he is there, and he replies that if he moves, the whole stage would fall down. He asks Peg to hand him the correct piece of wood from a pile, but she doesn't know which is the correct one. The farmer points out that Peg and Cat can do puzzles. Peg doesn't know what that has to do with building the stage, but the farmer explains that sometimes, you can apply knowledge to other situations. Peg draws the shape of the correct piece, and Cat finds it. Then, the farmer falls and lands in a trophy. Cat jokes "butter late than never" and is so proud of the joke that he doesn't look where he's going and trips on some butter, knocking over the stage. The farmer states that he will be too busy fixing it to teach them how to sculpt with butter but Peg points out that if they don't know how, they won't win the contest. She is about to say her catchphrase about having a really big problem, but the farmer interrupts, saying that it isn't a problem, and handing her a book. They then pass the teens, who speak in abbreviations, which Peg translates into "Got to go make mind-bogglingly awesome sculptures out of dairy products" because they are planning to be int the butter-sculpting contest. Mora asks Peg and Cat if they are coming to watch the teens sculpt with butter, but Peg and Cat explain that they will make sculptures too. Tessa is a bit skeptical that Peg and Cat know how, so Peg begins to read the book, but finds that it only instructs farm chores. Cat tries unsuccessfully to make a sculpture of someone milking a cow. Then, Peg feels awkward and she and Cat run away. They end up in the barn (and Cat temporarily gets his tail stuck in the door) and Peg is worried because there is nothing on butter in the book. They then spot a pig (but not the Pig) covered in garbage. Cat tries to wash it but the soap sticks. Peg then finds out that the instructions in the book say that to wash a pig, you need two cups of water and one bar of soap and they successfully wash the pig. Peg then observes the teens through the window, sculpting with butter. They then see a cow who appears out of sorts. Cat asks if the cow needs to go to the bathroom because she is squirming, but she shakes her head. Peg thinks the cow needs to be milked, but Cat says that the milk isn't coming out so the cow must be "broken". Peg follows the instructions in the book to milk the cow. Peg and Cat then see the teens sculpting their butter outside, but are having trouble seeing and lean in closer, but fall out the window and roll, knocking over a scarecrow. Peg decides they have to fix it quickly or else the crows will eat all the corn. Cat fixes it incorrectly, making the crows laugh. Using the instructions in the book again, they rebuild the scarecrow and the crows fly away. Then, the farmer shows up. Peg explains that it's the wrong book and then she and Cat reveal that the teens have sculpted a pizza (Jessie), a cell phone (Mora) and a bag (Tessa). Peg begins to freak out as Ramone is starting to judge already and she and Cat still don't know how to sculpt butter. The farmer pops up and taps her shoulder. Peg thinks he wants her to count backwards from five, but actually he just reminds her that she has the necessary knowledge but isn't aware. Peg and Cat don't know what he's talking about, but the farmer repeats what he said before about applied knowledge. They then use their knowledge to soften the butter by adding water to it. While several characters sing about knowledge, Peg and Cat sculpt a statue of the Pig posing like the Statue of Liberty and another sculpture of her and several others. Peg then wins first prize.
- This is a rare instance of Peg stopping her freak-out without counting backwards. It is also an instance of someone other than Cat interrupting a freak-out. That's because the farmer stopped Peg and suggested her to wash the hog.
- The "so everything is awesome" line is not sang during the song "Problem Solved" in this episode. Instead, Jessie sings, "This is gonna be awesome".
- Goof: On the PBS Kids Video App where this problem isn't joined with The Potty Problem, and the digital download release, the theme song with stuff that has to do with butter is definitely included. However, before the song, when Peg first said 2, the number 2 didn't appear on the screen alone.
- Goof: Peg did freak out as usual, but the farmer didn't make the sign for a whistle blown. But the whistle can be heard.