A tug-of-war between Elmo and his friend sends his blanket to faraway Grouchland, a place full of grouchy creatures and the villainous Huxley. Elmo embarks on a rescue mission, learning important lessons about sharing and responsibility.
Big Bird is sent to live far from Sesame Street by a pesky social worker. Unhappy, Big Bird runs away from his foster home, prompting the rest of the Sesame Street gang to go on a cross-country journey to find him.
Everyone on Sesame Street is preparing to celebrate New Year's Eve. However, Telly quickly discovers that this means the current year ends. He becomes afraid that he soon will enter an unknown year, and starts a campaign to prevent the new year from coming!