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: Jim Henson, Martin G. Baker
- Director: Eric Till
- Writer: Laura Phillips
- Music and Lyrics by: Jeff Moss
- Production Designer: Val Strazovec
- Lighting Designer: John Rook
- Musical Conductor and Arranger: Dick Lieb
- Muppet Design Group: Ed Christie, with Joanne Green, Jan Rosenthal, Rollie Krewson, Norman Tempia, Tim Miller
- Mechanical Design: Tom Newby, Fred Buchholz, Larry Jameson, Thom Flowers
- Conceptual Designer: Larry DiFiori
- Story Editor: Jocelyn Stevenson
- Creative Consultants: Lawrence Mirkin, Bonnie Erickson
- Production Manager: Ritamarie Peruggi
- 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 the sponsorship part of the opening credits, reading "Kraft Presents."
- Similar to edited versions of Emmet Otter's Jug-Band Christmas, Kermit's scenes were cut from the 2008 and 2013 home media releases, as well as broadcasts on The Hub and streaming on Netflix. A high-definition remaster of the special was released to Amazon Prime in 2019, with Kermit's scenes reinstated.