The Pajanimals are excited that Christmas is coming! Squacky really hopes he gets the new Fantastic Splash Super Sub, but then becomes worried because he thinks, "What if I don't get the sub?" Squacky can't sleep that night, so the Pajanimals travel to the Night Sky, where the Moon tells Squacky that Christmas isn't about the presents that you get... it's about spending time with the people you love and sharing holiday traditions with one another.
Sweetpea Sue and Cowbella are excited that grandma has sent them each a real teacup that she had when she was a kid. Sweetpea's is red and Cowbella's blue, but Sweetpea is sad when hers arrives broken. Apollo suggests that Cowbella could share her teacup, but she doesn't want to, which makes Sweetpea angry. That night the Pajanimals visit the moon, and Sweetpea tells him about the problem. Cowbella realizes that she feels sad because Sweetpea is sad, and the Moon tells her that as family, they care about how each other feels. Cowbella decides that she's going to give Sweetpea her teacup to make her feel better.
The Pajanimals have made a huge mess and while they are cleaning it up before bed, Cowbella has a great idea... what if they don't clean it up? At bedtime, she can't find Princess Lucy and doesn't like having to go to bed without her. In the Land of Build It, Cleveland also can't find his tools amongst his own mess, but Claude explains that all the two of them have to do is clean up their mess!
After going to a Halloween party, Cowbella reveals that she is nervous about trick or treating tomorrow because she didn't like all the scary vampires and zombies they saw at the party today. The Pajanimals travel to Storybook Land, where Edwin explains to Cowbella that there's nothing to be scared of. Those vampires and werewolves, etc. are just costumes that the big kids wear to have fun, just like her pretty princess costume!
While playing, Squacky says that he will share any of his things with Apollo, except for his blankie because blankie is too special. At bedtime, Apollo is mad because he always shares his stuff with Squacky. The Pajanimals travel to the Big, Blue Sea where Granny Pearl tells Apollo that it's good to share, but it's also okay to have one extra special thing that is just for you, like Squacky's blankie.
Squacky performs a magic show for the Pajanimals, but when his grand finale goes wrong, Sweet Pea Sue thinks it's very funny! The problem is, it wasn't supposed to be funny and her laughter hurts Squacky's feelings. The Pajanimals travel to the Land of Hush, where Bedtime Bunny explains to Sweet Pea that it's okay to laugh with your friends, but not at your friends.