Walter, from The Muppets, climbs out of a picture of himself on one of the walls of the Jim Henson Company, followed by Abby Cadabby, from Sesame Street. Walter and Abby get the idea to take an outdoor anniversary group photo. With a wave of her wand and some magic words ("Fabric, fleece, and foam sublime! Come on out, it's picture time!"), Abby brings all of the pictures of Muppets and Creatures from across the company to life. Since the photo shoot isn't due to happen until midnight, this gives everyone plenty of time to interact and mingle with each other; most of the special consists of interactions between characters from various Jim Henson Company productions.

In a spoof of Siskel and Ebert's Sneak Previews, Telly and Oscar are seen in a movie theater, reviewing the silliest songs from Sesame Street. Telly loves all of them and he gives them 5 "Wows". Oscar, however, dislikes them and gives them 5 "Phooeys" (but ends up liking the last clip).

Howard Langston, a salesman for a mattress company, is constantly kept busy at his job, disappointing his son. After he misses his son's karate exposition, Howard vows to make it up to him by buying an action figure of his son's favorite television hero for Christmas. Unfortunately for Howard, it is Christmas Eve, and every store is sold out of Turbo Man. Now, Howard must travel all over town and compete with everybody else to find a Turbo Man action figure.

Live-action showcase of ice skating performances led by Snoopy.