Mister Rogers greets several of his neighbors as he walks through his Neighborhood. Mr. McFeely gives him a box. Mister Rogers finds a new pair of sneakers — just what he needed — and a Christmas card from the McFeelys. Thankful for the gift from his friends, Mister Rogers talks about his Christmas wish. Afterwards, he receives a phone call letting him know that Mr. McFeely will be stopping by. Mr. McFeely stops by on his way to the rehearsal for the holiday get-together. He mentions that Stephanie, a young girl who will be performing, is quite disappointed that her family may miss the get-together due to car trouble. Mister Rogers goes with Mr. McFeely to the rehearsal where Stephanie shares her disappointment with Mister Rogers. Stephanie joins Mister Rogers as he returns to his house where they talk about how hard it is to wait for things you are looking forward to. Mister Rogers opens a gift from a friend — a small banner that says, “Merry Christmas” on one side and “Happy Chanukah” on the other. Taking out a dreidel, Mister Rogers spends some time talking about Chanukah as he plays and sings the Dreidel Song.
In the Neighborhood of Make-Believe, presents are not to be opened until King Friday gives his permission. Lady Elaine shares with Handyman Negri that she is upset that she has received only one present. When Mr. McFeely arrives with several packages to deliver, Lady Aberlin and Handyman Negri offer to help him. Lady Elaine finds that the others in the Neighborhood have received many more presents than she has, so she turns everything in the Neighborhood upside down — everything except the Music Man who is able to use his magic stick to keep himself right side up. Everything returns to normal when the Music Man gives Lady Elaine an ice-skating experience — a gift that does not need to be wrapped. When King Friday gives the word, presents are allowed to be opened throughout the Neighborhood — the first being a Christmas decoration for Lady Elaine put together in parts by all of her neighbors.
Back at the house, Mister Rogers talks about different family traditions — Christmas, Chanukah, and those who celebrate neither. He suggests that all presents are a sign of love. At the get-together, everyone sings as Stephanie prepares for her performance. She is overjoyed when her family arrives. Stephanie proudly performs her dance on the stage. Returning to the house, Mister Rogers concludes: “I, for one, wish you good memories of this holiday. And I hope you’ll be able to look for all the different ways that people have of showing that they love you.”