Role in the episode
After Bagheera embarrasses himself by spitting up a hairball in front of everyone and gets laughed at, he finds himself in a place where all other animals, who have done embarrassing things and have been laughed at, have formed a colony known as the Embarrassment Colony led by a turtle named Dictator Turtle, who never comes out of his shell due to his own embarrassment and is often carried like a king by a warthog and a hyena.
When Bagheera laughs at the warthog for having sand crabs permanently stuck to his rear, Dictator Turtle explains that laughing in the colony is not permitted. All the other animals have been laughed at and nobody likes it, which is why they all formed the Embarrassment Colony so that they will never be laughed at again. Dictator Turtle tells Bagheera that in order to fit in he "must have suffered some deep embarrassment, some horrible experience, some hard, wretching happening." When Bagheera tells him his embarrassment, Dictator Turtle; impressed, accepts him in the colony; much to everyone's delight.
Dictator Turtle's warthog carrier explains to Bagheera that the reason for having sand crabs on his rear was because he didn't realize it was a sand crab colony when he sat on it, thus, not being able to sit down again while the hyena carrier explains that his embarrassment is always his laughter no matter what. Other animals like an ostrich (embarrassment being that she has big feet and nubby knees) and a monkey (his being that he has spinach stuck in his teeth, which causes him to cover his face with a bag) explain to Bagheera their embarrassments as well, thus, making Dictator Turtle state that laughing is against the law. Then, he tells Bagheera that they plan to attack the very jungle that shamed them all.
Later, when Bagheera asks why Dictator Turtle stays inside his shell, the monkey tells him that "his embarrassment was a beaut" when asking a helmet to marry him. Before attacking the jungle, Dictator Turtle suggests everyone eats first. When Bagheera tries to talk some sense into the animals, Dictator Turtle refuses to listen.
When Bagheera and the animals notice Baloo and Prince Louie, who have been searching for Bagheera to apologize to, doing embarrassing things while falling down to reach the animals' food supply, they all start laughing; much to Dictator Turtle's chagrin and despite his orders to stop laughing. Then, the animals finally realize they like laughing at their own fat free (as told by the warthog) and that they can never give up their freedom to laugh (as told by the monkey). Dictator Turtle states "this is mutiny" and that as their leader, they must obey him but the animals finally have the courage to stand up to him when they decide not to follow him anymore and that he has spread enough evil here, "Turtle boy." So, Dictator Turtle decides to escape by letting out one of his arms to make himself fall off of his stand and roll down to the ground and into the river while floating away where he swears retaliation: "You haven't seen the last... of Dictator Turtle!" as the ostrich sarcastically states that "they never saw any of him." Then, the warthog simply decides he can easily sit down again just by taking off the sand crabs while the monkey can show his face again after taking off the bag and the spinach (which he jokes about keeping on him).