The story is told by Stiller the Elf to Stan the Snowball, recounting the year Christmas almost didn't happen. Stiller recalls that Oscar the Grouch had been researched as the one who had more Christmas joy than anyone else. As such, he plans to give Oscar the official Christmas-Counter-Downer, without which Christmas can't happen. When Oscar throws it away, the windows on the device vanish, and it's up to Elmo to once again save Christmas.