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Stinky Pete, or The Prospector as Jessie calls him, is a prospector doll and the main antagonist of the second film. He is voiced by Kelsey Grammer. He is a toy modeled after a character on the television show, Woody's Roundup, where the characters consists of Sheriff Woody (the main character), Jessie the Yodeling Cowgirl (Woody's yodeling cowgirl sidekick), Stinky Pete (an idiot hillbilly), and Bullseye the Horse (Woody's trusty steed). The Prospector doll seen in the film had never been opened and was still "Mint in the Box", making him sought after by collectors.

In contrast to the character on the show, Stinky Pete is quite intelligent, manipulative, and well-spoken and, when he first appears, seems to be a grandfather figure and mentor. The Prospector spent "a life time on a dime store shelf watching every other toy be sold," until Al McWhiggin eventually found him.

Stinky Pete really hates space toys, especially Buzz Lightyear, whom he had blamed for causing the show to be canceled after the launch of Sputnik, which caused children all over America to lose their interest in cowboy toys for space toys.

Prospector reveals his true colors when Woody agrees to go with Buzz Lightyear. He is infuriated about Woody leaving with Buzz and locks the vent to sabotage Woody's attempt to go back to Andy and take Jessie, and Bullseye with him. He also sabotages Woody's attempt in getting his arm back by secretly turning on the TV during the night because he thinks Woody is escaping. He frames Jessie for this. The fact that he has never experienced the love and affection of a child is likely what makes him so bitter and resentful. He sees children as destroyers of toys (like Sid) whose ultimate fate will be "spending eternity rotting in some landfill". This makes him all the more determined to go to the Tokyo museum and become an exhibit for the rest of his life, unlike Woody and Jessie. This leads to a showdown at the airport, where the Prospector punches Buzz, who came to rescue Woody off the ramp. Angered by this, Woody then fights the Prospector for harming his friend, but the Prospector reopens an old rip in Woody's arm, and is about to finish Woody off, but the toys blind and stun him with a flash camera. Buzz, having survived the fall, arrives and grabs the Prospector by his shirt. Thinking that it's time the Prospector learned the "true meaning of playtime", Woody instructs Buzz and the other toys to dump the Prospector into a Barbie doll backpack that belongs to a little girl named Amy, who enjoys decorating her dolls' faces with tattoos, as punishment and revenge for his betrayal. At that time, Amy decides to give the Prospector a makeover, much to his discomfort. The Prospector then starts crying as he is taken to his new owner's home.

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