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.

Harriet Heron and Osbourne Owl take Timmy and his friends from the Nursery on an exciting excursion to the beach. When Timmy finds a beautiful shell, he runs off to show his friends leaving his teddy and Bumpy the caterpillar behind. Soon his teddy and Bumpy are swept out to sea. Will Timmy be able to rescue them?