Mr. Rogers greets several of his neighbors as he walks through his neighborhood on the way to the television house. Mr. McFeely gives him a box with instructions and says not to open it until he has reached the house and changed his sweater. Waiting to do so, Mr. Rogers finds a new pair of sneakers, which is just what he needed, and a Christmas card from the McFeelys. When King Friday gives the word, presents are allowed to be opened throughout the Neighborhood--the first being a Christmas decoration for Lady Elaine which is put together in parts by all of her neighbors.