It's Christmas Eve and Santa's given Barney and his friends a special job to take Derek (the new kid in the neighborhood) to see if Santa knows his Address. After arriving in Barney's special sleigh, the kids frolic on the ice, pretend to be elves in Santa's workshop and learn from Mrs. Claus that "doing things for others is what Christmas is all about."

Adam's mother takes the Backyard Gang and Barney (still a stuffed toy doll) to the studio where she works. While there, Barney and the Backyard Gang tour the studio on their own, while producing their own show. From a cereal commercial set and a puppet show and the six little ducks and teddy bears and the US flag and an island paradise and a make up place to a jungle, the show is filmed along with many props in the studio. With the power of imagination and some movie magic, anything is possible when Barney's around.

The Backyard gang puts on a birthday show for Michael and Amy's dad. Barney encourages the gang to use their imagination to make old props seem like new.

Barney the Dinosaur joins his friends on an imaginative trip to school, where they explore classrooms, learn about safety, play games, and discover the fun of learning together. With songs, storytelling, and gentle lessons, Barney Goes to School encourages preschool-aged viewers to feel confident and excited about starting school.