Frosty the Snowman arrives in the town of Evergreen, where children are unhappy due to strict rules set by Mayor Tinkerton.
Walter engages in a food fight with Tinkerton's older son, Charlie, resulting in both boys landing in detention.
Meanwhile, the blank pages in the comic restore themselves, and Tommy discovers that Pankley stole the hat and locked it away the same winter that Tinkerton created Frosty.
The adults and children reconcile, with Tinkerton's belief in magic restored and the rules and curfews removed from Evergreen.
Even so, this special has more in common with the original than the previous sequel in 1992, the Lorne Michaels-Bill Melendez collaboration Frosty Returns.
The film originally aired annually on Cartoon Network from 2005 until December 11, 2011, when the special moved to Kids & Teens TV, which ceased operations in 2019.