Watch Out Little Teddy is a safety video that appears in "The Safety." It revolves around Little Teddy, an accident-prone bear who is repeatedly injured and subsequently reprimanded by the narrator. The video's disturbing and unsettling nature frightens Mr. Small and everyone else in Miss Simian's classroom, but no one is more scared than Darwin.
- This video was animated by Jérémie Périn. 
- This makes it the second segment to be animated by a guest animator, as well as the second animated by Périn. The first in both respects was the pixel-art sequence from "The Words", which was animated by Périn and Mikael Robert.
- Near the beginning of the tape, still images of the Overlook Hotel from The Shining can be briefly seen.
- This video is a reference to a public information film, the British equivalent of a public service announcement (PSA). It also parodies the violent nature of these films.