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SquarePants is a sponge who lives in a pineapple underwater, while his squid neighbor Squidward Tentacles lives in an Easter Island head. SpongeBob's other neighbor and best friend is a pink starfish named Patrick Star, who lives under a rock. SpongeBob and Patrick live on either side of Squidward.

SpongeBob's house-pet is a snail named Gary, whose "meow" is similar to a cat. Although Gary only speaks in a few episodes, the characters have shown an ability to understand him. In addition to this, underwater worms bark exactly like dogs, and are kept on chains. Jellyfish are the equivalent of bees; buzzing, stinging with poison (although it appears as an electric shock), and producing delicious "jelly", mocking the name "jellyfish", while still referring to a bee's honey. Fish act as the citizens of the community but, as a rule, are not important characters.