The 8th Annual Peach Creek Junior High Spelling Bee is an event that took place in "Too Smart for His Own Ed." There were four competitors in the bee: Rolf, Plank, Edd, and Ed. Each one besides Edd had assistance: Rolf was coached by Jimmy, Plank was coached by Jonny, and Ed was coached by Eddy. Nazz was the host of the spelling bee. Edd was favored to win, having won the past seven school spelling bees, which Rolf pointed out to his coach when he had trouble spelling a simple word. However, Jonny was confident that his best friend would win, and Eddy also had some tricks up his sleeve.
Backstage, tensions were high, as all the competitors were warming up. After a dreadful warmup, Rolf began to give up, as he knew that Edd would easily defeat him. Wanting to get away from the tension-filled scene, Edd wished his competitors well and slipped into the bathroom, where he found Eddy cramming pages ripped out of a dictionary into Ed's ear. Irate at the destruction of the dictionary, he angrily asked what they were doing and learned from Eddy that they were cramming. Not only that, but Eddy told Edd that he had made a bet with Kevin that Ed would win, and so he'd need Edd to intentionally lose. In short, he expected Edd to "stick around a round or two, so it looks legit, then wham! take a dive." Edd naturally refused, and Eddy began to sweat, as it looked like he'd lose a dollar.
Onstage, Nazz was rather inept at hosting the spelling bee, as she was unable to pronounce most of the spelling words, and it fell to Edd to suggest what the words were. The first word was given to Edd, and it was "cerebral". Naturally, Edd spelled it right, and the next person to take the stand was Plank, with the word "deciduous". Of course, Nazz couldn't hear Plank, and he was disqualified for taking too much time. Jonny was offended by this, and called Nazz a wood-hater before storming offstage. Rolf was the next one up, with the word "colonial"; however, he couldn't think of any way to spell it, and eventually just angrily yelled that he wasn't going to compete in this "monkey ritual of English words!" This, however, was greeted with applause from his Nana. With two of the starting four eliminated, Ed was the last one up, and Eddy began to despair, as it seemed highly unlikely that he'd win the bet. His hopes only decreased when Ed got his word, "ectoplasm", and just sat there for a few seconds. However, soon enough Ed remembered something from a movie, went over to the microphone, and spelled the word right. The second round then began, with the competition whittled down to Ed and Edd. The word Edd was given was "gravy", and he gladly stepped up to spell the word–and spelled it "g-r-a-v-i". This massive goof meant that Ed simply had to spell the name of his favorite food to win, so Ed stepped up, spelled it, and won.
Edd was vastly disappointed in his failure and began to doubt his academic abilities, a view only reinforced by the other kids giving up on him, calling him a has-been and regarding him as rather dumb. Kevin angrily paid off Eddy and left the spelling bee. Eddy, meanwhile, started a new scam where he capitalized on Ed's newfound "smart" aura, dressing him like a nerd and calling him "Egghead Ed". Eventually, however, Ed was revealed to only be a good speller and Edd regained his self-confidence and congratulated his best friend on having won the spelling bee. Jonny, meanwhile, repeatedly tried to capture Nazz as revenge for her being a "wood-hater", making several attempts that Nazz largely remained unaware of.