Ted E. Bear tries to learn what Christmas is by staying awake instead of hibernating like all the other bears. The other bears all think he's crazy and that he'll never stay up that long. As Ted journey's to discover what Christmas is, he finds himself in a toy store late Christmas Eve. As Ted talks to the toys he grows sleepy and before he knows it Santa is waking him up. Ted tells Santa that he is looking for Christmas so Santa takes Ted and gives him to a little boy as a present. Then Ted E. Bear learns what Christmas is about.