Elmo Saves Christmas is a 60-minute television special and home video that was released and aired on PBS in 1996. In the story, Elmo learns that Christmas can't occur every day. It was shot at Sesame Street's usual home: the Kaufman Astoria Studios in New York City. It was based on a short story, "Christmas Every Day" by William Dean Howells.
Elmo stays up till midnight on Christmas Eve, hoping to catch a glimpse of Santa Claus. He eventually falls asleep, but is awakened when Santa gets stuck halfway up his chimney. Santa tells Elmo that when he pulled him out of chimney, he saved Christmas for children all over the world. To thank him, he lets him choose a special Christmas present: either a pink teddy bear or a magical snow globe. Elmo chooses the snow globe and gets three wishes. His first wish was a glass of water, which was wasteful, but Santa warns him not to waste the other two wishes.
On Christmas morning, Elmo, excited by all the joy and cheer, wishes for it to be Christmas every day as his second one, which turns out to be a huge mistake. At first, everyone is excited, but Santa arrives, explaining to him that Christmas can't occur everyday because it wouldn't be special. To that, he has Lightning the reindeer take him on a sleigh ride to the future to see the effects of his wish and what Christmas is like in seasons such as spring and summer. Big Bird is upset because his friend, Snuffy went to celebrate Christmas with his grandmother in Cincinnati, Ohio and promised him that he'd return the day after Christmas, but since Elmo made the wish, Snuffy never came back. Maria, Luis, and Gabi were enjoying themselves on Christmas, but thanks to Elmo's wish, they won't be able to fix all the broken toasters that their customers leave behind since the Fix-It shop is closed for Christmas. Santa's elves haven't gotten a vacation in months and holidays such as Easter and the Fourth of July aren't the same in celebrating. But Oscar enjoys it since his trash can is surrounded by wrapping paper and worn-out Christmas trees, broken toasters piled up outside the Fix-It Shop, and nothing is playing on television but It's a Wonderful Life, declaring it a "bah humbug" kind of Christmas every day.