Schatzi is the Dachshund given to Kitty Forman by Red.
Schatzi (German for "little treasure") was given to Kitty by Red in an effort to help her get through the mood swings of menopause. He was introduced in Season 5, but disappeared for awhile. It is revealed in the Season 7 episode, "It's Only Rock and Roll" (also Schatzi's last appearance), that he had been hiding under the house and, according to Red, he is "afraid of the garden hose". Later on in the episode, Kitty starts taking Schatzi to her Tai Chi sessions with Midge and Donna. He barks repeatedly, and after asking politely twice, Kitty screams at him saying "Shut your freakin' trap!," making him stop barking. When Eric is disappointed by the disapproval of his artwork, he leans on a Buddha statue on the top of a short wall, which Schatzi is behind, and falls on his head, causing Kitty to react in shock, only gasping Schatzi's name and staring at Eric. Eric tries to give comic relief by saying "That statue was supposed to bring you peace, and in a way it did," refering to Schatzi's infernal barking.
He is seen in the end credits of the episode with a bandage on his head in the Circle howling, however he is never seen or mentioned again in the series.
Schatzi appears in Seasons 5 through 7, and is never seen again in the series after Eric accidently hurt him with a statue. He is mainly seen with Kitty, but appeared in the Circle twice, his first and last episode.
As previously stated above, Schatzi has been in The Circle twice in his first and last episode. Both times in the circle he would sit where Fez would normally sit. Like other circles Schatzi has felt the effects of The Circle; the first time he went through three cans of food.