In this one-hour Christmas special, Christmas Eve is celebrated at the Jones' home, where the toys in the playroom magically come to life when people are not around.
Following an introduction by Kermit the Frog, who provides a glimpse into the Jones' household as the family makes holiday preparations, the toys talk about the meaning of Christmas and how they will prepare to welcome the new toys that will be given to the Jones children, Jamie and Jesse.
Rugby Tiger, who was Jamie's Christmas present the previous year, remembers that special day, and decides to find a way into a gift box under the tree again this year. But the other toys are worried that he will become "frozen" once he leaves the playroom, and they devise a plan to rescue him.
- "Toys Love to Play"
- "The Greatest Christmas Toy of All"
- "Try the Impossible"
- "Together at Christmas"
- Dave Goelz as Rugby Tiger and Ditz
- Steve Whitmire as Mew and the Dauntless Dragon
- Kathryn Mullen as Apple
- Jerry Nelson as Balthazar
- Richard Hunt as Belmont
- Camille Bonora as Meteora and Molly (voice)
- Brian Henson as Cruiser
- Rob Mills as Bleep
- Nikki Tilroe as Ding-a-ling
- Marsha Moreau as Jamie
- Zachary Bennett as Jesse
- Jim Henson as Kermit the Frog and Jack-in-the-Box (uncredited)
- Executive Producer: Diana Birkenfield
- Producers: Martin G. Baker and Jim Henson
- Director: Eric Till
- Writer: Laura Phillips
- Music and Lyrics by: Jeff Moss
- Music Arranger and Conductor: Dick Lieb
- Muppet Design Group: Ed Christie , with Joanne Green , Rollie Krewson , Tim Miller , Jan Rosenthal , Norman Tempia
- Story Editor: Jocelyn Stevenson
- Production Manager: Ritamarie Peruggi
- Lighting Designer: John Rook
- Assistant Director: Wayne Moss
- When this special was released on VHS in 1993, the opening sequence (before the main titles) was cut.
- Re-airings and releases of the special remove part of the opening credits, reading "Kraft Presents."
- Kermit's scenes are cut from the 2008 DVD, as well as broadcasts on The Hub and streaming on Netflix.