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.

Tukiki is a small Eskimo boy who sets out to discover the meaning of Christmas along with a magical character known as North Wind. He visits different places and learns about their customs of Christmas which brings about a turn of events when he arrives home.

Dr. Cooper, a puppet scientist, along with his crew, prove categorically that smoking is bad for you.