Bottom part (above the K1, P1 ribbing) is all knit on round needles; the top part is garter stitch on straight needles
I have always had a terrible time with fixing dropped stitches. When I make sweaters for Knit for Kids, once the K1 P1 ribbing is completed, the body of the sweater is knit on round needles, round and round, all knit; which actually is stockinette stitch (just as if I had knit on the right side and purled on the wrong side on straight needles). When I drop a stitch in the body--a rare occurrence, I am usually able to fix it so that it doesn't show.
The yoke and sleeves of the these little sweaters are knit on straight needles in garter stitch (knit both sides) and that's where I have a problem. When I drop a stitch in this part of the sweater, no matter how hard I try I make a big mess trying to fix it and everything looks just terrible. I end up having to rip out back down to where the stitch was first dropped.
However, that was THEN and this is NOW: I've found these wonderful video demonstrations of how to fix dropped stitches in either situation. I shouldn't have any trouble fixing my dropped stitches any more but, just in case, I'm going to knit up a little sample and practice dropping stitches and fixing them.
In stockinette stitch (knit a row, purl a row; or when you are working on round needles, all rows knit):
In garter stitch (each row is knit on straight needles):
These videos are part of a series on YouTube that are done by MarleneD1216. Check out the rest of her nice clear knitting and sewing videos here.