The program was filmed in Sesame Street's usual home, the Kaufman Astoria Studios in New York City.
Elmo helps pull out Santa, who offers him either a teddy bear or a magical snow globe as a gift.
Big Bird is sad that Snuffy does not return from visiting his grandmother in Cincinnati, the businesses remain closed, It's a Wonderful Life plays continuously on every TV channel, Santa's overworked elves make flawed toys, and other holidays are overshadowed.
Fortunately, Lightning takes him back to the Christmas Eve when he rescued Santa, and Elmo chooses a plush "Moo-Bunny" as his new gift.
Additional Muppets performed by Pam Arciero, Peter Linz, Noel MacNeal, Jim Martin, John Tartaglia, Alice Dinnean and Matt Vogel.