The special, a follow-up to the previous installment The Land Without Feelings (from 1983), sees the return of the ten original Bears and the rarely-seen Cloud Keeper, as well as the villain Professor Coldheart. In addition, the special introduces Baby Hugs, Baby Tugs, Grams Bear, and Professor Coldheart's sidekick, Frostbite.

It's Christmas Eve and all of Santa's helpers are busy packing the sleigh... all except one unnamed elf who is too young and too clumsy to help. But in a dream come true he is riding with Santa helping deliver the toys and making a sacrifice which earns him his name "Bluetoes."

The Patterson family learns the true meaning of Christmas when Lizzie loses her stuffed bunny.

Ben Chase is an on-the-rise Boston attorney currently defending a wealthy client in a high-profile murder case. Martin Thiel is the wealthy young man on trial for a particularly brutal murder. The verdict sets Thiel free. Within 24 hours another grizzly and all-too-familiar murder has taken place with striking similarities to the first crime. Chase inexplicably agrees to act as his defense attorney; but this time it will be to gather evidence that will put away his client for good.

Kevin, an angry boy on Earth, is mad because he has to move away from his friend Donna. Declaring that he doesn't care, he decides to run away and ends up in The Land Without Feelings, which is ruled by Professeur Coldheart. The Care Bears, along with Donna, go into the Land Without Feelings to save Kevin.