Fozzie and Emily go over where everyone is going to sleep. Big Bird and Cookie Monster will sleep in the attic, Herry Monster will sleep in the bathtub, and Ernie and Bert will bunk with Kermit. The "Sesame Street" Muppets perform a pageant of '"Twas the Night Before Christmas" where the Two-Headed Monster portrays Santa Claus. Kermit then gets a third call from Piggy stating that her limo got stuck in the snow and that she is calling for a taxi. Fozzie approaches Kermit stating that now is a good time to show him his new comedy act with the Snowman, but their act is cut short no thanks to Statler and Waldorf who are friends with Emily.