A Muppet Family Christmas has been released on home video a number of times. No release has ever included the completely unedited version that first aired on TV in 1987. US releases have seen the most significant cuts due to music rights. Overseas releases have had fewer problems securing rights to songs, but have still suffered from minor edits.
- The red "A Muppet Family Christmas" logo seen at the beginning was added for the home video releases of the special. In the original cut of the special, the logo is seen over Ma Bear's farmhouse at the end of the song "We Need a Little Christmas". However, when reediting the special for future television airings it was slightly reworked. This brief musical interlude was edited from the master and the logo was reinserted separately. Because this new master was of higher quality it has been used for all subsequent TV airings and all video releases.
- The snowman musical and comedy number with Fozzie is completely gone. In the original version the song "Sleigh Ride" is sung. Rowlf begins playing the song on Emily Bear's out-of-tune piano, saying he "loves out-of-tune pianos," while Sprocket watches him play. Fozzie, the Snowman, and penguins sing outside. This is cut due to rights with the song.
- The Muppet Babies song "Santa Claus is Coming to Town" is removed. Included in the broadcast version of the film are the baby versions of Piggy, Kermit, Fozzie, Rowlf, Scooter, Animal and Gonzo. In the edited versions of the film, they begin the home movie and Animal immediately bursts through the screen – the whole home movie and song is cut, again due to music rights.
- Miss Piggy and the Muppets singing "Home for the Holidays" is not shown in the edited version. After Miss Piggy arrives and Kermit mentions that she always likes to make an entrance, the edited release cuts immediately to the beginning of the Carol Sing Medley. The entire song, along with Miss Piggy falling on the icy patch, is removed due to music rights.
- A brief segment (5 seconds) where Fozzie and Elmo light the Christmas tree only appears on the original 1987 version.
- "Have Yourself a Merry Little Christmas" and "I Heard the Bells on Christmas Day" are both removed from the Carol Sing Medley on the DVD. This is due to the music rights for the songs.
- The scene with Fozzie and Ma hanging stocking is removed. In the scene Emily Bear (Ma) hangs Fozzie's stocking underneath the fire. Fozzie mentions that he's a grown bear, alluding to the fact he doesn't need it anymore. When Emily reaches to take it down, Fozzie decides it's okay to leave it up. This lost scene was cut from the 1989 remastered version.
- The DVD version has different end credits. The ABC version has the copyright information right below Jim Henson's name on the last credit. The DVD version is similar to the ABC one, but does not have the original copyright title, and cuts to a Henson logo.