She says, "That's the thing I love most about skin, Elmo. Skin comes in lots of beautiful shades and colors."
In an adorable intereaction, she inspires Elmo to love the "beautiful red skin" he's in too.
This is not the first time that Nyong'o spoke about her skin. A brand ambassador to Lancome and People's 2014 Most Beautiful woman, she spoke about how she was not always confident at the Essence Black Women Luncheon in February.
At the time she said, "I put on the TV and only saw pale skin, I got teased and taunted about my night-shaded skin. And my one prayer to God, the miracle worker, was that I would wake up lighter-skinned."
Now, she's showing women and children alike that beauty is also skin deep.
Watch our fashion time warp with Lupita Nyong'o below.