Timmy and his friends are excited about Christmas Eve at the Nursery. They make decorations, choose a tree, write letters to Santa, and post them in a special Santa post box. A blizzard outside traps them, and Timmy is upset because he won't be able to unwrap his dream bike on Christmas morning. However, Osbourne and Harriet create a cozy Christmas atmosphere, and the children have a surprise Christmas sleepover at the Nursery. Timmy stays up to watch for Santa but falls asleep and wakes up to find a big surprise waiting for him and his friends on Christmas morning.