It's Christmas Eve at the Furchester Hotel and Big Bird and Count Von Count are visiting Elmo.

Big Bird realises he's forgotten to tell Santa that he's staying at The Furchester Hotel for Christmas and is worried that Santa won't know where to deliver his presents. Elmo and the other guests haven't told Santa either and become really worried. Will Santa know where to deliver their presents?

It's too late to get a letter to the North Pole, so the Furchesters try to distract all the guests with their Christmas activities. However, every mention of Santa makes everyone worried again, they don't finish any of the activities they started. And Phoebe is disappointed that she can't enjoy her Christmas the way the Furchesters planned it.

With the help of Harvey P Dull, Elmo and Big Bird realise there's more to Christmas than presents, and that sharing traditions and celebrating together is what makes Christmas so special.