Percy's Predicament is the twentieth episode ever made in Season 2.
Daisy's time on the Island of Sodor is going badly for everyone concerned. Not only is she frightened of bulls and cows, she remains lazy, bad-tempered, stubborn, and refuses to do jobs she does not want to do.
Percy grumpily shunts trucks one day, as Toby pulls noticing Daisy has once again refused to take the milk wagon, forcing Percy to make a special trip with it after his normal work is done. Wanting to help, Toby offers to take the milk if Percy fetches his trucks from the quarry in return. The crew agrees to this and Percy sets off.
Percy goes to the quarry to fetch the trucks. Having never been there before, he starts enjoying himself by ordering the trucks about. The trucks do not take kindly to a stranger entering the quarry and giving orders, and vow to pay Percy out.
While running along, Percy whistles to the guard to pin down his brakes only for the trucks to push him along. The signalman is too late to switch Percy into the runaway siding and Percy crashes into a brakevan, destroys it, and perches on the remains of a truck.
Toby and Daisy help clear up the mess and the Fat Controller arrives to speak to Percy, telling him that now the branchline will have to be run with only Toby and a Diesel, leaving him in an awful predicament. Percy, very much stuck in his own predicament, understands fully what he means.
The Fat Controller also scolds Daisy for her laziness and is close to sending her away. Daisy is left feeling ashamed of herself, but the Fat Controller has decided to give her another chance given how hard she worked after Percy's accident. Daisy is happy and promises to work hard with Toby's help. Knowing Toby has a lot of experience with running a branchline, the Fat Controller is satisfied.
The next day, Thomas returns from the works and is happily reunited with Annie and Clarabel while Percy is sent away to be repaired. All the engines are now friends and Daisy learns a lot from Toby, leading her to become a really useful engine.
- Percy's trucks' faces continuously disappear and reappear.