| Issue | #3 |
| Published | October 1963 |
| Cover Price | 0.12 USD |
| Pages | 36 |
| Editing | Richard Goldwater |
| Characters | Josie; Melody; Pepper; Alexander Cabot III; The Boss; Waldo U. Fink |
| Genre | humor; adventure |
| Pencils | Dan DeCarlo |
| Notes | Re-colored version of the splash page from part 4 of the issue's main story. |
| Characters | Josie; Melody; Pepper; Alexander Cabot III; Alexander Cabot II; The Boss; Waldo U. Fink; un-named cop |
| Synopsis | Melody buys a sweater that, unknown to her, has real diamonds sewn into it as part of a smuggling operation. The smugglers follow the girls up to Alex's beach house to steal the sweater back. |
| Genre | humor; adventure |
| Script | Frank Doyle |
| Pencils | Dan DeCarlo |
| Notes | Script identifiable as Doyle by his style and DeCarlo's statement that Doyle did "all the writing" for early Josie comics. |
| Characters | Josie; Melody; Pepper; Alexander Cabot III; Alexander Cabot II; The Boss; Waldo U. Fink |
| Synopsis | The Boss sends his incompetent underling, Waldo, over to the Cabot beach house to steal back the diamond-covered sweater. |
| Genre | humor; adventure |
| Script | Frank Doyle |
| Pencils | Dan DeCarlo |
| Characters | Josie; Melody; Pepper; Alexander Cabot III; Alexander Cabot II; The Boss; Waldo U. Fink |
| Synopsis | Alex comes up with a plan to lure the smugglers out into the open and capture them at the annual Beach Comber's Ball. |
| Genre | humor; adventure |
| Script | Frank Doyle |
| Pencils | Dan DeCarlo |
| Notes | The manifesto Alex recites ("Breathes there a man with soul so dead who hasn't heard of Alexander Cabot III?") is a mangled version of a passage from Sir Walter Scott's poem "The Lay of the Last Minstrel." |
| Genre | fact; music |
| Letters | Typeset |
| Characters | Li'l Jinx; Hap Holliday |
| Genre | humor; children |
| Script | Joe Edwards |
| Pencils | Joe Edwards |
| Inks | Joe Edwards |
| Letters | Joe Edwards |
| Characters | Josie; Melody; Pepper; Alexander Cabot III; Alexander Cabot II; The Boss; Waldo U. Fink; Ernie Watiko |
| Synopsis | The smugglers see Pepper wearing the diamonds in her hair and force her to give them up. |
| Genre | humor; adventure |
| Script | Frank Doyle |
| Pencils | Dan DeCarlo |