Princess Sleepy is the title character in a Sesame Street fairy tale read by Luis to some kids on the steps of 123 Sesame Street. (First: Episode 2416)

A handsome prince (a Large Lavender Live Hand AM performed by Martin P. Robinson) encounters her in the forest and tries several methods to awaken her. He finally gives her a kiss... at which point the prince becomes a frog, and Princess Sleepy awakens.

Princess Sleepy wants to reward the frog by taking him to her father's castle and having the citizens gather flies for him, but the princely frog resists and runs off. The pair eventually run past Luis and the kids.

The segment was remade in 1995 with Luis once again reading the story to two kids in the park. Camille Bonora reprised the role of Princess Sleepy, while the prince (a Lavender AM) was performed by Kevin Clash. (First: Episode 3377)