Everyone on Sesame Street is preparing to celebrate New Year's Eve as they all go Around the Corner to hold the party. However, Telly quickly discovers that this means the current year ends. He becomes afraid that he soon will enter an unknown year, and starts a campaign to prevent the new year from coming. Lily Tomlin makes an appearance as her Laugh-In character Ernestine the Telephone Operator. Meanwhile, Elmo is the host of the Monster News Network, showing how New Year's Eve is celebrated around the world. This is done by showing segments created by the Sesame characters from the different co-productions around the world.
Danny is obsessed with a fictional movie character action hero Jack Slater. When a magical ticket transports him into Jack's latest adventure, Danny finds himself in a world where movie magic and reality collide.